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Assume that a company has developed a new industrial component called Part A that offers...

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Accounting

Assume that a company has developed a new industrial component called Part A that offers superior performance relative to its competitors. The competing part sells for $1,500 and needs to be replaced after 1,500 hours of use. It also requires $400 of preventive maintenance during its useful life. Part A is similar to its competing product with two important exceptionsit needs to be replaced after 3,000 hours of use and it requires only $200 of preventive maintenance during its useful life.
From a value-based pricing standpoint, what is the differentiation value offered by Part A relative to the competitors offering for each 3,000 hours of usage?
Multiple Choice
$2,100
$3,600
$1,700
$3,200

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