Schimpf Industries Incorporated has developed a new grinder, model WC-13, that is designed to offer superior performance to a comparable grinder sold by Schimpf's main competitor. The competing grinder sells for $64,000 and needs to be replaced after 8,900 hours of use. It also requires $17,800 of preventive maintenance during its useful life. Model WC-13's performance capabilities are similar to the competing product with two important exceptions-it needs to be replaced only after 35,600 hours of use and it requires $44,500 of preventive maintenance during its useful life.From a value-based pricing standpoint what range of possible prices should Schimpf consider when setting a price for model WC-13?
A) $64,000 ≤ Value-based price ≤ $282,700
B) $218,700 ≤ Value-based price ≤ $256,000
C) $64,000 ≤ Value-based price ≤ $256,000
D) $218,700 ≤ Value-based price ≤ $282,700

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The Answer of Schimpf Industries Incorporated has developed a new grinder, model WC-13, that is designed to offer superior performance to a comparable grinder sold by Schimpf's main competitor. The competing grinder sells for $64,000 and needs to be replaced after 8,900 hours of use. It also requires $17,800 of preventive maintenance during its useful life. Model WC-13's performance capabilities are similar to the competing product with two important exceptions-it needs to be replaced only after 35,600 hours of use and it requires $44,500 of preventive maintenance during its useful life.From a value-based pricing standpoint what range of possible prices should Schimpf consider when setting a price for model WC-13?
A) $64,000 ≤ Value-based price ≤ $282,700
B) $218,700 ≤ Value-based price ≤ $256,000
C) $64,000 ≤ Value-based price ≤ $256,000
D) $218,700 ≤ Value-based price ≤ $282,700

Schimpf Industries Incorporated Has Developed a New Grinder, Model WC-13