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Olivier Industries Incorporated has developed a new instrument, model AG-06, that is designed to offer superior performance to a comparable instrument sold by Olivier's main
Olivier Industries Incorporated has developed a new instrument, model AG-06, that is designed to offer superior performance to a comparable instrument sold by Olivier's main competitor. The competing instrument sells for \\( \\$ 74,000 \\) and needs to be replaced after 1,000 hours of use. It also requires \\( \\$ 7,000 \\) of preventive maintenance during its useful life. Model AG-06's performance capabilities are similar to the competing product with two important exceptions-it needs to be replaced only after 4,000 hours of use and it requires \\( \\$ 14,000 \\) of preventive maintenance during its usefu life. From a value-based pricing standpoint what is the differentiation value offered by model AG-06 relative to the competitor's offering for each 4,000 hours of usage? Multiple Choice \\( \\$ 296,000 \\) \\( \\$ 102,000 \\) \\( \\$ 236,000 \\) \\( \\$ 14,000 \\)
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