McDermott Company has developed a new industrial component called IC-75. The company is excited about IC-75 because it offers superior performance relative to the comparable component sold by McDermott's primary competitor. The competing part sells for $1,360 and needs to be replaced after 2,160 hours of use. It also requires $280 of preventive maintenance during its useful life The IC-75's performance capabilities are similar to its competing product with two important exceptions -- it needs to be replaced after 4,320 hours of use and it requires $380 of preventive maintenance during its useful ife. Required: From a value-based pricing standpoint 1 What is the reference value that McDermott should consider when pricing IC-75? 2. What is the differentiation value offered by IC-75 relative the competitor's offering for each 4,320 hours of usage? 3. What is IC-75's economic value to the customer over its 4,320-hour life? 4. What range of possible prices should McDermott consider when setting price for 10.75? 1. Roforonce value 2. Differentiation value 3. Economic value to the customer 4 Range of possible prices