Data Table arent: Land $ Construction Landscaping Variable marketing costs 55,000 ... $ 121,000 ... $ 7,000 $ 2,000 Print Done ha on, i Requirements mi sign cel 1. Which approach to pricing should Smith Builders emphasize? Why? 2. Will Smith Builders be able to achieve its target profit levels? Show your computations. 3. Bathrooms and kitchens are typically the most important selling features of a home. Smith Builders could differentiate the homes by upgrading bathrooms and kitchens. The upgrades would cost $16,000 per home but would enable the company to increase the selling prices by $28,000 per home in general, kitchen and bathroom upgrades typically add at least 150% of their cost to the value of any home.) If Smith Builders upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? Show your analysis. Als Print Done Smith Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Boise. Land and labor are cheap, and competition among developers is fierce. The homes are "cookie-cutter," with any upgrades added by the buyer after the sale. Smith Builders' cost per developed sublot are as follows: (Click the icon to view the costs.) Smith Builders would like to earn a profit of 16% of the variable cost of each home sale. Similar homes offered by competing builders sell for $208,000 each. Read the requirements Requirement 1. Which approach to pricing should Smith Builders emphasize? Why? Smith will need to emphasize a target-costing approach to pricing. Because the tract homes are not unique and face stiff competition, Smith will not have much control over pricing. Requirement 2. Will Smith Builders be able to achieve its target profit levels? Show your computations. Complete the following table to show whether Smith Builders will be able to achieve their target profit levels. (Use parentheses or a minus sign to indicate a profit shortfall.) Revenue at market price 208,000 Less: Desired profit Target cost per home Less: Actual current variable cost Expected excess profit (profit shortfall)