Hennig Plastics Equipment Corporation has developed a new injection mold-model XP-30-that has been designed to outperform a competitor's best-selling injection mold. Model XP-30 has a useful life of 56,000 hours of service and its operating cost is $1.00 per hour. In contrast, the competitor's product has a useful life of 28,000 hours of service and has operating costs that average $1.60 per hour. The competitor's injection mold sells for $135,000. Hennig has not yet established a selling price for model XP-30.
From a value-based pricing standpoint what is XP-30's economic value to the customer over its 56,000 hour useful life?
Multiple Choice
$196,600
$303,600
$179,800
$168,600