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Builders builds townhomes in a new subdivision just outside of . Land and labour are cheap, and competition among developers is fierce. The homes in

Builders builds townhomes in a new subdivision just outside of . Land and labour are cheap, and competition among developers is fierce. The homes in the subdivision are identical to one another, but buyers can upgrade features by paying the difference. Builders' cost per developed sublot are as follows:Land. ..............................
$54,000
Construction. ........................
$123,000
Landscaping. ........................
$6,400
Variable marketing costs. ..............
$1,800
LOADING... (Click the icon to view the costs.)
Builders would like to earn a profit of 14% of the variable cost of each home sale. Similar homes offered by competing builders sell for 205,000 each.

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