Denver. Land and labor are cheap, and oompetition among cevelopers is Serce. The homes are "cookie-cutter," with any upgrades added by the buyer ator the sale. Gunter Buiders' costs per developed sublot are as follows: fR: (Click the icon to view the cotts.) Requirement 1. Which approach to pricing should Gunter Buiders enphasize? Why? Gunter will neod to emphasize a approsth to pricing Because the tract homed are s6if competilion, Gunter wal control over pricing Requirement 2. WS Gunter Bullaers be able to actieve as target proft leveis? Show your computationt. bo actiove fatarget pioft its ports wat perhome saie. your anaysis Denver. Land and labor are cheag. and competiton among developers is ferce. The homes are "ceckie-cumer," wth any upgases aded by the buyer afher the sale. Garter Bulders' conts per deviloped sublot are as folows: Simlar homes offered ty bornpebing budiers sell for $203.000 eoch. Fead the fequrements IIt (Cick the icon bo view the cotsi) to achieve tir per home sale Yoe arayes. sabecodia wil owTr ta target eroht Curte pyate the burroctes and kairars no that if has Less: Expected excess profit (profit shor Given the current market price and its target proft. Its profit will Requirement 3. Bathrooms and ki uple upgrades would cost $14,000 per 1 150\% of their cont to the value of a your analysis. Compote the new cost-plus price p? Plus: Total variable coets Plus: Requirements 1. Which approach to pricing should Gunter Builders emphasize? Why? 2. Will Gunter 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. Gunter Builders could differentate the homes by upgrading bathrooms and kitchens. The upgrades would cost $14,000 per home but would enable Gunter Builders to increase the selling prices by $24.500 per homo (in general, kitchen and bathroom upgrades typically add at least 150% of their cost to the value of any home.) If Gunter Builders upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? Show your analysis