avis Robotics Corporation has developed a new robotmodel FI-73that has been designed to outperform a competitors best-selling robot. The competitors product has a useful life of 10,000 hours of service, has operating costs that average $4.60 per hour, and sells for $109,000. In contrast, model FI-73 has a useful life of 30,000 hours of service and its operating cost is $2.60 per hour. Tavis has not yet established a selling price for model FI-73.

From a value-based pricing standpoint what range of possible prices should Tavis consider when setting a price for FI-73?

a) $187,000 ? Value-based price ? $278,000

b) $109,000 ? Value-based price ? $187,000

c) $109,000 ? Value-based price ? $387,000

d) $278,000 ? Value-based price ? $387,000