HW Score: 60.75%, 10.38 E25-12 (similar to and seling features of a home Preston Builders could differendiate the homes by upgrading the bathrooms and kilchons. The upgrades would typicaly add about 175% ofther cost to the value ofany home)M'Prosto and home be? Should the company differentiate its product in this manner? Requirement 2 Begin by calculating the target cost 206.000 740 $ 179,260 Market price of similar homes Less: Desired prot Target full cost per home Given the current market price and Preston's current variable costs, the company will not be able to achieve its desired profit 11.740 per home sale the target by $ The company's profit will fall short of g suburbs of Atilanta. LandPreston Builders would like to are a standard model, with offered by competing buildens eveloped sublot are as Read the requirements Data Table ls Land $58,000 120,000 12,000 1,000 Construction Landscaping Variable selling costs Print Done t selling features of a home. Preston Builders could differentiate the homes les orices bv $38.500 per home. (Kitchen and bathroom uparades tvoicallv a Clear All 2491 1. Which approach to pricing should Preston Builders emphasize? Why? 2. Will Preston Builders be able to achieve its target profit levels? 3. Bathrooms and kitchens are typically the most important selling features of a home. Preston Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $22,000 per home but would enable Preston Builders to increase the sales prices by $38,500 per home. (Kitchen and bathroom upgrades typically add about 175% of their cost to the value of any home.) If Preston Builders makes the upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? rren