Impossible Foods (IF) uses industrial sized meat "grinders" to combine the ingredients in the Impossible Burger. The grinders include a grinding "plate" that has to be frequently replaced. Currently, Impossible Foods buys these plates from Seydelmann. However, a competing manufacturer, called VegCut, has developed a new type of plate that requires less maintenance costs and is more durable. They want to sell this plate to Impossible Foods. Assuming that VegCut uses a value-based pricing approach (i.e., finding True Economic Value), what is the most that they can charge to Impossible Foods, per plate?

Consider the following as given:

Current (Seydelmann) Cost to Impossible Foods: $25 per plate.

The installation cost of any plate is $15 (assume this accounts for labor and downtime of the machine).

Seydelmann plates last 1 month while VegCut plates last 3 months.

Seydelmann plates require frequent cleaning. This costs Impossible Foods $80 per month in labor.

VegCut plates require less frequent cleaning. This costs Impossible Foods $40 per month in labor.