Hennig Plastics Equipment Corporation has developed a new injection moldmodel XP-30that has been designed to outperform a competitors best-selling injection mold. Model XP-30 has a useful life of 70,000 hours of service and its operating cost is $0.90 per hour. In contrast, the competitors product has a useful life of 35,000 hours of service and has operating costs that average $1.40 per hour. The competitors injection mold sells for $165,000. Hennig has not yet established a selling price for model XP-30. From a value-based pricing standpoint what is XP-30s economic value to the customer over its 70,000 hour useful life?

Multiple Choice

$231,500

$200,000

$365,000

$214,000