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 $5.05 per hour, and sells for $118,000. In contrast, model FI-73 has a useful life of 30,000 hours of service and its operating cost is $3.05 per hour. Tavis has not yet established a selling price for model FI-73.

From a value-based pricing standpoint what is FI-73’s economic value to the customer over its 30,000 hour useful life?

Answer rating: 100% (QA)

To determine the economic value of model FI73 to the customer over its 30000hour useful life we need ... View the full answer