Question
In: Accounting
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?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Eytchison Industrial Products Inc. has developed a new industrial grinder, model OK-23, that is designed to...
Eytchison Industrial Products Inc. has developed a new
industrial grinder, model OK-23, that is designed to offer superior
performance to a comparable grinder sold by Eytchison’s main
competitor. The competing grinder sells for $52,000 and needs to be
replaced after 1,000 hours of use. It also requires $9,800 of
preventive maintenance during its useful life. Model OK-23’s
performance capabilities are similar to the competing grinder with
two important exceptions—it needs to be replaced only after 3,000
hours of use and...
Wermers Industries Inc. has developed a new drill press, model LS-88, that is designed to offer...
Wermers Industries
Inc. has developed a new drill press, model LS-88, that is designed
to offer superior performance to a comparable drill press sold by
Wermers’s main competitor. The competing drill press sells for
$31,000 and needs to be replaced after 1,000 hours of use. It also
requires $6,000 of preventive maintenance during its useful life.
ModelLS-88’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...
Boback Industries Inc. has developed a new drill press, model DP-18, that is designed to offer...
Boback Industries Inc. has developed a new drill press, model
DP-18, that is designed to offer superior performance to a
comparable press sold by Boback's main competitor. The competing
press sells for $88,000 and needs to be replaced after 29,600 hours
of use. It also requires $59,200 of preventive maintenance during
its useful life. Model DP-18’s performance capabilities are similar
to the competing product with two important exceptions—it needs to
be replaced only after 118,400 hours of use and it...
A electronics manufacturer has developed a new type of remote control button that is designed to...
A electronics manufacturer has developed a new type of remote
control button that is designed to operate longer before failing to
work consistently. A random sample of 28 of the new buttons is
selected and each is tested in continuous operation until it fails
to work consistently. The resulting lifetimes are found to have a
sample mean of ?¯x¯ = 1254.6 hours and a sample standard deviation
of s = 109.1. Independent tests reveal that the mean lifetime of
the...
A electronics manufacturer has developed a new type of remote control button that is designed to...
A electronics manufacturer has developed a new type of remote
control button that is designed to operate longer before failing to
work consistently. A random sample of 20 of the new buttons is
selected and each is tested in continuous operation until it fails
to work consistently. The resulting lifetimes are found to have a
sample mean of ?¯ = 1260.4 hours and a sample standard deviation of
s = 116.1. Independent tests reveal that the mean lifetime of the...
A researcher has developed a new drug designed to reduce blood pressure. In an experiment, 21...
A researcher has developed a new drug designed to reduce blood
pressure. In an experiment, 21 subjects were assigned randomly to
the treatment group, and received the new experimental drug. The
other 23 subjects were assigned to the control group, and received
a standard, well known treatment. After a suitable period of time,
the reduction in blood pressure for each subject was recorded. A
summary of these data is:
n
x? s
Treatment group (new
drug):
21 23.48
8.01...
A tire company has developed a new tread design and claim that the newly designed tire...
A tire company has developed a new tread design and claim that
the newly designed tire has a mean life of 60,000 miles or
more.
To examine the claim, a random sample of 16 prototype tires is
tested. The mean tire life for this sample is 60,758 miles.
Assume that the tire life is normally distributed with unknown
mean µ and standard deviation σ=1500 miles.
(a) Please construct a 90% confidence interval for the mean life
of the new designed...
A new drug has been developed to treat a condition, and it is alleged to be...
A new drug has been developed to treat a condition, and it is
alleged to be more effective than traditional treatment. An
experiment will be conducted to test whether the claim is true. To
perform the hypothesis test, a 99% confidence level is selected for
the hypothesis test. The new drug will be administered to a sample
of 200 individuals with the condition, selected at random. Another
300 individuals are randomly selected to receive the traditional
treatment.
Of the 200...
A new fertilizer has been developed to increase the yield on crops, and the makers of...
A new fertilizer has been developed to increase the yield on
crops, and the makers of the fertilizer want to better understand
which of the two blends of this fertilizer are most effective for
wheat, corn, and soy beans crops. They test each of the two blends
on one sample of each of the three types of crops.
Inner Totals in ()
Figure 1 – Data for Example 1
Type of Crop
Blend
Wheat
Corn
Soy
Total
Blend X
33...
A new fertilizer has been developed to increase the yield oncrops, and the makers of...
A new fertilizer has been developed to increase the yield on
crops, and the makers of the fertilizer want to better understand
which of the two blends of this fertilizer are most effective for
wheat, corn, and soy beans crops. They test each of the two blends
on one sample of each of the three types of crops.Inner Totals in ()Figure 1 – Data for Example 1Type of CropBlendWheatCornSoyTotalBlend X23 (79)56 28 (78)5066 (144)78301Blend Y35 (65)3075 (107)3240 (88)48260Total144185232561a.At the 5% significance...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Write a javascript program that computes the total cost for a five year car lease. The...
- sara is a 50-year-old woman who lives in a poor village in india. unfortunately, sara’s health...
- What is your opinion on the use of AI technology? Is it necessary or is it...
- For this problem, carry at least four digits after the decimal in your calculations. Answers may...
- Why is it okay to speculate on Currency?
- What is the budgeting cycle and master budget? Why should companies use a master budget?
- please i need to have good answers and easy to understand This exercise refers to the...
ADVERTISEMENT