Hennig Plastics Equipment Corporation has developed a new injection mold-model XP-30-that has been designed to outperform...

 

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Hennig Plastics Equipment Corporation has developed a new injection mold-model XP-30-that has been designed to outperform a competitor's best-selling injection mold. Model XP-30 has a useful life of 74,000 hours of service and its operating cost is $1.00 per hour. In contrast, the competitor's product has a useful life of 37,000 hours of service and has operating costs that average $1.50 per hour. The competitor's injection mold sells for $165,000. Hennig has not yet established a selling price for model XP-30. From a value-based pricing standpoint what is XP-30's economic value to the customer over its 74,000 hour useful life? Multiple Choice $202,000 $220,500 $367,000 $239,000 Hennig Plastics Equipment Corporation has developed a new injection mold-model XP-30-that has been designed to outperform a competitor's best-selling injection mold. Model XP-30 has a useful life of 74,000 hours of service and its operating cost is $1.00 per hour. In contrast, the competitor's product has a useful life of 37,000 hours of service and has operating costs that average $1.50 per hour. The competitor's injection mold sells for $165,000. Hennig has not yet established a selling price for model XP-30. From a value-based pricing standpoint what is XP-30's economic value to the customer over its 74,000 hour useful life? Multiple Choice $202,000 $220,500 $367,000 $239,000

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To calculate the economic value of the XP30 injection mold from a valuebased pricing standpoint we n... View the full answer