E8-19A (similar to) Question Help Rouse Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Albany. Land and labor are cheap, Rouse Builders would like to earn a profit of 14% of the variable cost of each home sale. Similar homes offered by competing and competition among developers is fierce. The homes are cookie-cutter, with any upgrades added by the buyer after thebuilders sell for $200,000 each sale. Rouse Builders' cost per developed sublot are as follows Read the requirements. (Click the icon to view the costs.) Requirement1. Which approach to pricing should Rouse Builders emphasize? Why? Rouse will need to emphasize a approach to pricin g. Because the tract homes are stiff competition, Rouse will control over pricing Data Table Land Construction Landscaping Variable marketing costs S 52,000 124,000 S 6,000 S 1,000 1. Which approach to pricing should Rouse Builders emphasize? Why? 2. Will Rouse Builders be able to achieve its target profit levels? Show your computations. 3. Bathrooms and ktchens are typically the most important selling features of a home. Rouse Builders could differentiate the homes by upgrading bathrooms and kitchens. The upgrades would cost $24,000 per home but would enable the company to increase the selling prices by $42.000 per home(in general, kitchen and bathroom upgrades typically add at least 150% of their cost to the value of any home.) If Rouse Builders upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? Show your analysis. Print Done Print Done Click to select your answeris) and then click Check