Gunter 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 $203,000 each

builds 1,500. square foot starter tract homes in the first growing suburbs.

requirements:

requirement 1 & 2:

requirement 3:

ble to a her Gur Land Construction.... Landscaping.... Variable marketing costs $ 50,000 $ 120,000 S 9,000 $ 3,000 $ 50,000 entheses or a min 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 differentiate 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 home (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 Less Less Requirement 3. Bathrooms and kitchens are typically the most important selling features of a home. Gunter bathrooms and kitchens. The upgrades would cost $14,000 per home but would enable the company t kitchen and bathroom upgrades typically add at least 150% of ther cost to the value of any home i Gunter Bu iders upgrades, what wil he n we st home be? Should the company differentiate its product in this manner? Show your analysis Buikders could differentiate the homes by upgrading o increase the selling prices by $24,500 per home (in general, Compute the new cost-plus price per home Plus Total variable costs Plus an se the upgraded the expected m arket price of an upgraded house "Gunter The new cost plus price, with bath and kitchen upgrades, is actually homes for $227,500, as expected, it will earn over pricing v its target profit Gunter upgrade the bathrooms and kitchens so that it has control