(Chapter 2) The manager of a machine-parts distributor is about to buy an automated telephone ordering system. The manager estimates that each phone call handled by such a system will result in $|.00 more contribution than if the phone call is handled by a sales representative. The company receives 30 calls per hour that could be handled by such a system. The manager has narrowed his search to two possibilities, Telephone System A and Telephone System B. Telephone System A can handle 20 calls per hour and is priced at $50,000. Telephone System B can handle 24 calls per hour. Both telephone systems have the same expected life span, 6,000 hours (which does not include down time). Both Telephone System A and Telephone System B are expected to break down 8 times during their life span. However, the average cost of repairing Telephone System A is $600 whereas the average cost of repairing Telephone System B is $1,000. The manager now wants to estimate the value to the customer of Telephone System B. (a) What is the reference value he should use? Explain your reasoning. (b) What is the positive differentiation value from more calls? Show and explain your work. (c) What is the negative differentiation value from more expensive breakdowns? Show and explain your work. (d) Here are some incorrect answers to Parts (a) through (c): (a) $2000, (b) $5000, (0) $1000. If these were correct answers, then what would be the manager's estimate of the VTC of Telephone System B? Explain your reasoning