Secore Robotics Corporation has developed a new robot-model TR-53-that has been designed to outperform a competitor's best-selling robot. The competitor's product has a useful life of 20,000 hours of service, has operating costs that average $1.30 per hour, and sells for $109,000. In contrast, model TR-53 has a useful life of 100,000 hours of service and its operating cost is $0.80 per hour. Secore has not yet established a selling price for model TR-53.From a value-based pricing standpoint what is the reference value that Secore should consider when pricing model TR-53?
A. $135,000
B. $189,000
C. $545,000
D. $109,000
Answer: D
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