1 Kramee Bulders bulids wwnhomes in a new abdvinion just cutside of Calpary. Land and labour are cheap, and competiloe among developers is fierce. The homes in the iclick tee icon to view the costs. Questog 3 appeach io prichg because he towritiones are wht comptation, Kramer wil wer pony enontrol Requirement 2. Wi Kramer Bullders be able to achleve its target profe levels? Show your computations. Compleve the folowing eable to show whether Kramer Bulders will be able to achleve the farget proft level. (Use parentheses or a minus sign to indicate a profit shortfall.) Ohen the ciesert machet prite and Kramer's current variable cosis, the company wil able te achleve the target profit. The expected profit Evi per home sale of the target profit Kramer Bolden bulda lowehomes in a sew subdivilion just outside of Calgary. Land and labour are cheap, and cempetition among developers is ferce. The horses in the subdivison are idenfical to one another, but beyers can upgrade fechres by paying the ditference. Kraner Builders' cost per developed sublot are as follows: (Chick the icon to view the costs) Howmer Eolden would wie 10 am a profi of 14% of the variable cost of each home sale Simlar homes ollered by competing builders sell for $205, 000 aach. Requiteenten 3. Buthrooms and kitchens are typicaty the mest impertant seling features of a home. Kramer Builders could differendiale the homes by upgracing bathrooms and khchens. The uporodes would cont \$21,000 por bome but would enable Kramer Beilders to increase the selling prices by \$35,700 per home. (In general, kitehen and bathroom upgades bpiaaly ads at least 150% of their cest to the value of any home. ) If Kranser Builders upgrades. what wil the new cost-plus price per home be? Should the compary diflerentate is preduct is that manner? Show your analysis. Compute the new ced-plus price ber home What is the apected makket selling price of the homes with the upgrades? The expected market price wodld be 1 The new cospoplus price, with bath and kitchen upgrades, is the expected market price of an upgaded house. If Kramer can sel the upgraded homes for the emecied market pricts, the compacy will eam the target profit Kramer upgrade the bathrooms and kitchens so that it has pricing ownhomes in a new subdivision just outside of Calgary. Land and labour are cheap, a to one another, but buyers can upgrade features by paying the difference. Kramer Bui like Costs