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1) Hennig Plastics Equipment Corporation has developed a new injection moldimodel XPBOithat has been designed to outperform a competitor's bestselling injection mold. Model XP30 has
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Hennig Plastics Equipment Corporation has developed a new injection moldimodel XPBOithat has been designed to outperform a competitor's bestselling injection mold. Model XP30 has a useful life of 70,000 hours of service and its operating cost is $0.80 per hour. In contrast, the competitor's product has a useful life of 35,000 hours of service and has operating costs that average $1.10 per hour. The competitor's injection mold sells for $151,000. Hennig has not yet established a selling price for model X930. From a valuebased pricing standpoint what is XP30's economic value to the customer over its 70,000 hour useful life? Multiple Choice $172,000 $323,000 $189,500 3000 $200,000 The management of Giammarino Corporation is considering introducing a new product--a compact barbecue. At a selling price of $67 per unit, management projects sales of 10,000 units. Launching the barbecue as a new product would require an investment of $50,000. The desired return on investment is 14%. The target cost per barbecue is closest to: Multiple Choice O $75.58 O $66.30 O $76.38 O $67.00Step by Step Solution
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