Your company is coming out with a new student laptop. The next best alternative has a retail price of $999. Compared to the next best alternative, your new computer laptop has super speed valued at $200, enhanced memory valued at $100, and a ultra high definition screen valued at $300. The next best alternative offers an extended warranty that you don't offer valued at $150 and touch screen technology that you don't have which is valued at $100. Your total variable costs are $699. Applying a value based pricing strategy would result in a retail price for your laptop of ?

$1,349

$999

$300

$1,599

None of these

I was provided the answer of $1349, but doesn't that total variable cost come into play on this problem?