Tavis Robotics Corporation has developed a new robot—model FI-73—that has been designed to outperform a competitor’s...

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 $4.65 per hour, and sells for $110,000. In contrast, model FI-73 has a useful life of 30,000 hours of service and its operating cost is $2.65 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?

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ekkarill92 answered 1 year ago

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