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 $1.260 and needs to be replaced after 2,060 hours of use. It also requires $230 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 4.120 hours of use and it requires $330 of preventive maintenance during its useful life. 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 4.120 hours of usage? 3. What is IC-75's economic value to the customer over its 4,120-hour life? 4. What range of possible prices should McDermott consider when setting a price for IC-75? 1. Reference value. 2. Differentiation value 3 Economic value to the customer 4 Range of possible prices eValue-based price