1. an industrial equipment company assumes that their crane model adds $10,000 in lifetime reliability value and $8,000 in servicevalue per crane. The equivalent competitor model is priced at $82,000. If the companydecides to discount the total value-added price by 15%, what is the final price to the consumer?

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter5: Activity-based Costing And Management
Section: Chapter Questions
Problem 16MCQ: Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000...
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1.

an industrial equipment company assumes

that their crane model adds $10,000 in lifetime reliability value and $8,000 in servicevalue per crane. The equivalent competitor model is priced at $82,000. If the companydecides to discount the total value-added price by 15%, what is the final price to the

consumer?

I

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