Valmont Company developed a new industrial plece of equlpment called the XP.200. The company is considering two methods of establlshing o selling price for the XP-200-absorption cost-plus pricing and value-bosed pricling. Valmont's cost accounting system reports an absorption unit product cost for XP-200 of $10,000. Its markup percentage on absorption cost is 85%. The company's marketing managers have expressed concerns about the use of absorption cost-plus pricing because it seems to overlook the fact that the XP-200 offers superior performance relative to the compatable plece of equipment sold by Volmont's primary competitor. More specifically, the XP-200 can be used for 25,000 hours before replacement. it only requires $2,600 of preventive maintenance during its useful life and it consumes $200 of electricity per 1,250 hours used. These flgures compare fovorably to the competing plece of equlpment that sells for $25,000, needs to be replaced after 12,500 hours of use, requires $5,200 of preventlve maintenance during its useful life, and consumes $236 of electricity per 1,250 hours used. Required: 1. If Valmont uses absorption cost-plus pricing, what price will it establish for the XP-200? 2. What is XP-200's economic value to the customer (EVC) over its 25,000-hour life? 3. If Valmont uses value-based pricing, what range of possible prices should it consider when setting a price for the XP200