Bennet Builders builds 1,500-square-foot starter tract homes in the fast-grewing suburbs of Bennet Buldess would sie to eaen a profit of 14% of the wariable cost of nach horme sold. Alsanta. Land and labor are cheap, and compettion among developers is fiere. The homes are a Similar homes otlered ty competing bulders sel for $206,000 each. Assume the standard model, with any upgrades added by the buyer aher the sale. Benneit Bulders' costs per company has no fund costs. developed sublot are as follows (Click the icon to view the costs.) Read the focuirements Requirement 1. Which approach to pricing chould Benneat Bulbers emphasize? Why? Benneh Bulders will need to emghasize a apgroach to pricing because they are This means Bonnett wit control over priong because the thact homes are sia compertion. Requirement 2. Wit Bennent Bulders be able to achieve is taget peofl leveis? Beoin by calsuiating the tarpet cost. Given the current market price and Beenetrs current variable conth. the compety wit is acheve its deired prott The comparry's proft wit the target by per howe sale to the value of any home.) If Bernetl Builders makes the upgrases, what wal we new cost plus proe per home be? Shoudd the compary differentath is groduct in tha manner? Given the curent market price and Bennetrs current variable costs, the company will to achieve its desited profit. The company's profi will the target by per home sale. Requiremeont 3. Bathrooms and kinchens are typicaly the most important soling features of a home. Benneit Builders could differentiate the homes by upgrading the bathroons and kitchens. The upgrades would cost 530,000 per home bul would enable Bonnett Builders to increase the sales prices by $52,500 per home. (Kitchen and bathroom upgrades fypicaly add about 175% of their coe to the value of any home.) if Bennen Bulders makns the upgrades, what will the now cost-plus price per home bee? Should the company differentiato its product in this manner? Should the company oiferentate its product in this manner? The new cosi-plus price per home, with bah and wichen upgrades, is actualy the expocted muket price of an upgraded house. It Bennett can sel the upgraded homes ior sase soo. as expected he will tam his desired proth. Bennett upgade te batrooms and kechens so that he hat control over pheing Data table ve its desired profit. uilders could differen 500 per home. (Kitch be? Should the comp