44 U 00:54.57 Assume that a company has developed a new industrial component called Part A that offers superior performance relative to its competitors. The competing part sells for $1,500 and needs to be replaced after 1,500 hours of use. It also requires $400 of preventive maintenance during its useful life. Part A is similar to its competing product with two important exceptions-it needs to be replaced after 3,000 hours of use and it requires only $200 of preventive maintenance during its useful life. From a value-based pricing standpoint, what is the reference value that the company should consider when pricing Part A? Multiple Choice O O O $3,000 $1,900 $3,800 $1.500
44 U 00:54.57 Assume that a company has developed a new industrial component called Part A that offers superior performance relative to its competitors. The competing part sells for $1,500 and needs to be replaced after 1,500 hours of use. It also requires $400 of preventive maintenance during its useful life. Part A is similar to its competing product with two important exceptions-it needs to be replaced after 3,000 hours of use and it requires only $200 of preventive maintenance during its useful life. From a value-based pricing standpoint, what is the reference value that the company should consider when pricing Part A? Multiple Choice O O O $3,000 $1,900 $3,800 $1.500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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00:54:57
Assume that a company has developed a new industrial component called Part A that offers superior performance relative to its competitors. The competing part sells for $1,500 and needs to be replaced after 1,500 hours of use. It also requires $400 of preventive
maintenance during its useful life. Part A is similar to its competing product with two important exceptions-it needs to be replaced after 3,000 hours of use and it requires only $200 of preventive maintenance during its useful life.
From a value-based pricing standpoint, what is the reference value that the company should consider when pricing Part A?
Multiple Choice
$3,000
$1,900
$3,800
$1,500
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