Tavis Robotics Corporation has developed a new robot-model FI-73-that has been designed to outperform a competitor's best-selling robot. The competitor's product has a useful life of 10,000 hours of service, has operating costs that average $4.60 per hour, and sells for $109,000. In contrast, model FI-73 has a useful life of 30,000 hours of service and its operating cost is $2.60 per hour. Tavis has not yet established a selling price for model FI-73.From a value-based pricing standpoint, what is the differentiation value offered by FI-73 relative to the competitor's offering for each 30,000 hours of service?
A. $278,000
B. $155,000
C. $60,000
D. $187,000
Answer: A
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