Answer:
$1,300.
Step-by-step explanation:
The Economic Value to the Customer (EVC) is the idea that a customer will buy a product only if its value (which is not necessarily reflected in its price) is greater than the value of the next-best alternative. To find this value, we must follow these steps:
1. Identify the value elements to the customer.
According to the problem statement, the option we must evaluate is Printer B, which has two value elements: it increases productivity and reduces maintenance and operation costs.
2. Assign a monetary value to each element and find the "total additional value".
Productivity is increased by $100, and operation and maintenance costs are reduced by half. That is to say that if printer A has costs of $ 400, printer B has costs of $200, therefore the savings generated to the customer is also $200 (400-200).
The "total additional value" is the sum of the two previous values, that is, $300.
3. Determine the purchase price for the next-best alternative.
The other alternative is Printer A, whose price is $1000.
4. Determine the EVC.
The EVC is the sum of the total additional value and the purchase price for the next-best alternative. In this case, we have: $ 300 + $ 1000 = $ 1,300