Chasin Industries Inc. has developed a new robot, model JB-32, that is designed to offer superior performance to a comparable robot sold by Chasin's main competitor. The competing robot sells for $11,000 and needs to be replaced after 1,000 hours of use. It also requires $1,000 of preventive maintenance during its useful life. Model JB-32's performance capabilities are similar to the competing product with two important exceptions-it needs to be replaced only after 2,000 hours of use and it requires $1,000 of preventive maintenance during its useful life.From a value-based pricing standpoint what is the reference value that Chasin should consider when pricing model JB-32?

A. $13,000
B. $22,000
C. $12,000
D. $11,000


Answer: D

Business

You might also like to view...

Which viewpoint defines authentic leadership as a reciprocal process?

A. intrapersonal B. interpersonal C. developmental D. fundamental

Business

Which of the following statements is True

a. Ending inventory of work in process plus total manufacturing costs equal cost to account for. b. Beginning inventory of work in progress minus total manufacturing costs equals costs to account for. c. Ending inventory of finished goods is deducted from goods available for sales to determine cost of goods sold. d. None of the above choices are correct.

Business

Describe the significance of the Williams Act

What will be an ideal response?

Business

Under the net method, when a company uses a perpetual inventory system, an invoice for $2,000 with terms of 2/10, n/30 should be recorded with a debit to Merchandise Inventory and a credit to Accounts Payable of $2,000.

Answer the following statement true (T) or false (F)

Business