Cables Electronics Corporation has developed a new instrument-model XG-75--that has been designed to outperform a competitor's...
Cables Electronics Corporation has developed a new instrument-model XG-75-that has been designed to outperform a competitor's best-selling instrument. Model XG-75 has a useful life of 92,000 hours of service and its operating cost is $3.80 per hour. In contrast, the competitor's product has a useful life of 46,000 hours of service and has operating costs that average $7.40 per hour. The competitor's instrument sells for $122,000. Cables has not yet established a selling price for model XG-75. From a value-based...
Conaghan Avionics Corporation has developed a new high pressure pump-model RA 79-that has been designed to outperform a competitor's best selling high pressure pump. The competitor's product has a useful life of 30,000 hours of service, has operating costs that average $3.60 per hour and sells for $159.000. In contrast, model RA-19 has a useful life of 60,000 hours of service and its operating cost is $2.00 per hour. Conaghan has not yet established a selling price for model Rл...
Morr Logistic Solutions Corporation has developed a new forklift-model QY-49-that has been designed to out perform a competitor's best-selling forklift. The competitor's product has a useful life of 10,000 hours of service, has operating costs that average $3.70 per hour, and sells for $109,000. In contrast, model QY-49 has a useful life of 40,000 hours of service and its operating cost is $2.10 per hour. Morr has not yet established a selling price for model QY49 From a value-based pricing...
Rapson Pure Water Solutions Corporation has developed a new water purification system-model EN 78-that has been designed to outperform a competitor's best-selling water purification system. Model EN 78 has a useful life of 120,000 hours of service and its operating cost is $0.70 per hour. In contrast, the competitor's product has a useful life of 40,000 hours of service and has operating costs that average $1.20 per hour. The competitor's water purification system sells for $149,000, Rapson has not yet...
Morice Industries Inc. has developed a new injection mold, model IA 05, that is designed to offer superior performance to a comparable injection mold sold by Morice's main competitor. The competing injection mold sells for $54,000 and needs to be replaced after 1000 hours of use. It also requires 57.000 of preventive maintenance during its useful life. Model IA-05's performance capabilities are similar to the competing product with two important exceptions-It needs to be replaced only after 2.000 hours of...
McDermott Company has developed a new industrial component called IC-75. The company is excited about IC-75 because it offers superior performance relative to the comparable component sold by McDermott's primary competitor. The competing part sells for $1,560 and needs to be replaced after 2,360 hours of use. It also requires $380 of preventive maintenance during its useful life. The IC-75's performance capabilities are similar to its competing product with two important exceptions-it needs to be replaced after 4,720 hours of...
Schimpf Industries Inc. has developed a new grinder, model WC-13, that is designed to offer superior performance to a comparable grinder sold by Schimpf’s main competitor. The competing grinder sells for $86,000 and needs to be replaced after 13,200 hours of use. It also requires $26,400 of preventive maintenance during its useful life. Model WC-13’s performance capabilities are similar to the competing product with two important exceptions—it needs to be replaced only after 52,800 hours of use and it requires...
15. Schimpf Industries Inc. has developed a new grinder, model WC-13, that is designed to offer superior performance to a comparable grinder sold by Schimpf’s main competitor. The competing grinder sells for $86,000 and needs to be replaced after 13,200 hours of use. It also requires $26,400 of preventive maintenance during its useful life. Model WC-13’s performance capabilities are similar to the competing product with two important exceptions—it needs to be replaced only after 52,800 hours of use and it...
The management of Devine Instrument Company is considering the purchase of a new drilling machine, model RoboDril 1010K. According to the specifications and testing results, RoboDril will substantially increase productivity over AccuDril X10, the machine Devine is currently using. The AccuDril was acquired 8 years ago for $110,000 and is being depreciated using the straight-line method over a 10-year expected life and an estimated salvage value of $30,000. The engineering department expects the AccuDril to keep going for another 3...