Bennett Builders builds 1,500 square foot starter tract homes in the fast growing suburbs of Atlanta Land and laborare cheap, and competition among developers is fierce The homes are a standard model with any upgrades added by the buyer after the sale Bennett Builders's costs per developed sublot are as follows (Click the icon to view the costs) Bennett Builders would like to eam a profit of 14% of the variable cost of each home sold. Similar homes offered by competing builders sell for 5201,000 each Assume the company has no fixed costs Read the requirements Requirement 1. Which approach to pricing should Bennett Builders emphasize? Why? This means Bennett will control Bennett Builders will need to emphasize a over pricing because the tract homes are approach to pricing because they are stiff competition have significant Requirement 2. Will Bennett Builders be able to achieve its target profit levels ? Begin by calculating the target cost not have much Market price of similar homes Less Desired profit Target full cost per home Choose from any list or enter any number in the input felds and then continue to the next question WIU Umpuny TUSHUNAQU LUSS ders's costs per developed sublot are as follows: the costs.) 0 Data Table - X proach to pricing should Be Land This means Bennett will to emphasize a ract homes are 56,000 122,000 8,000 2,000 Construction Landscaping Variable selling costs mett Builders be able to achie arget cost. omes Print Done Bennett Builders builds 1,500-square-foot starter tract homes in the fast-growing Bennett Builders would like to earn a profit of 14% of the variable cost of each suburbs of Atlanta Land and laborare cheap, and competition among developers home sold. Similar homes offered by competing builders sell for $201,000 each is fierce. The homes are a standard model, with any upgrades added by the buyer Assume the company has no faced costs after the le Bennett Builders's Cotts per developed sublot are as follows: Read the requirements Click the icon to view the costs) Given the current market price and Bennett's current variable costs, the company will to achieve its desired profit The company's profit will the target by 5 per home sale Requirement 3. Bathrooms and ily the most important selling features of a home Bennett Builders could differentiate the homes by upgrading the bathrooms and Kitchens Th exceed ost $30,000 per home but would enable Bennett Builders to increase the sales prices by 552,500 per home (Kitchen and bathroom upgrade fall short of 175% of the cost to the value of any home ) If Bennett Builders makes the upgrades, what will the new cost.plus price per home be? SI Sifferentiate its product in this manner? Calculate the new cost-plus price per home Current variable cost per home Plus Variable cost of Kitchen and bathroom upgrade per home Total variable cost per home Choose from any list or enter any number in the input fields and then continue to the next question Bennett Builders builds 1,500 square foot starter tract homes in the fast-growing suburbs of Atlanta Land and labor are cheap, and competition among developers is fierce. The homes are a standard model, with any upgrades added by the buyer after the sale. Bennett Builders's costs per developed sublot are as follows: (Click the icon to view the costs.) Bennett Builders would like to earn a profit of 14% of the variable cost of each home sold. Similar homes offered by competing builders sell for $201.000 each Assume the company has no fixed costs. Read the requirements LUITEITE VO U S TOTES Plus: Variable cost of kitchen and bathroom upgrade per home Total variable cost per home Plus: Desired profit per home Cost-plus price per home Should the company differentiate its product in this manner? The new cost-plus price per home, with bath and kitchen upgrades, is actually the expected market price of an upgraded house. If Bennett can sell the upgraded homes for $253,500. as expected, he wil earn his desired profit Bennett upgrade the bathrooms and kitchens so that he has control over pricing Choose from any list or enter any number in the input fields and then continue to the next
