Valmont Company has developed a new industrial pl establishing a selling price for the XP 200-absorption cost-plus pricing and value-based pricing. Valmont's cost accounting system reports an absorption unit product cost for XP-200 of $9,900. Its markup percentage on absorption cost is 85%. The seems to overlook the fact that the XP 200 offers superior performance relative to the c Valmont's primary competitor. More specifically, the XP-200 can be used for 24,000 hours before replacement. It only requires $2,500o of preventive maintenance during its useful life and it consumes $195 of electricity per 1,200 hours used. company's marketing managers have expressed concerns about the use of absorption cost-plus pricing becauseit These figures compare favorably to the competing piece of equipment that sells for $24,000, needs to be reptaced after 12.000 hours of use, requires $5,000 of preventive maintenance during its useful life, and consumes $230 of electricity per 1,200 hours used. Required: 1. If Valmont uses absorption cost-plus pricing, what price will t establish for the XP-200? 2. What is XP 200's economic value to the customer (EVC) over its 24,000-hour life? 3. If Valmont uses value-based pricing, what range of possible prices should it consider when setting a price for the XP-200