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I provided pictures of the help to solve information provided that's what you see in Requirement 1, 2, and 3 below are examples of how

I provided pictures of the "help to solve" information provided that's what you see in Requirement 1, 2, and 3 below are examples of how it was shown to solve.

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Requirement 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 $24,000 per home but would enable Preston Builders to increase the sales prices by $42,000 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? Calculate the new cost-plus price per home. Let's begin by first calculating the new total variable costs. Remember that the variable cost of the upgraded home will equal the variable cost of the standard model home that we determined above, $183,000, plus the additional variable cost of completing the upgrades. Go ahead and compute the new variable costs by completing the calculation below. Current variable cost per home $ 183,000 Plus: Variable cost of kitchen and bathroom upgrade per home 24,000 Total variable costs per home $ 207,000 Now calculate the new cost-plus price per home. Recall that the desired profit is 14% of the total variable costs. Current variable cost per home $ 183,000 Plus: Variable cost of kitchen and bathroom upgrade per home 24,000 Total variable costs per home $ 207,000 Plus: Desired profit per home 28,980 235,980 Cost-plus price per home $ Should the company differentiate its product in this manner? Compare the new cost-plus price per home of $235,980 to the expected market price of an upgraded house of $247,000. If Preston can earn its desired profit by upgrading the kitchen and baths, then the company should differentiate its product. If the desired profit cannot be achieved, then the company should not differentiate the productRequirement 2. Will Preston Builders be able to achieve its target profit levels? In order to determine whether Preston Builders will be able to achieve its desired profit levels, we must first determine what that desired profit amount is. Recall the desired profit is calculated as 14% of the total variable costs. Before we can compute the desired profit, we must first determine the total variable cost to build each home. Let's compute this amount now using the information provided. Land $ 52,000 Construction 122,000 Landscaping 6,000 Variable selling costs 3,000 Current variable cost $ 183,000 Next we will compute Preston's target cost to build each home and then compare that with the actual variable costs that we computed above to determine whether or not Preston Builders can achieve its desired profit level. Recall that the desired profit is calculated as 14% of the total variable costs (14% x $183,000). Refer to the information provided to compute Preston Builders' target cost to produce each home. Market price of similiar homes $ 205,000 Less: Desired profit 25,620 Target full cost per home $ 179,380 Now calculate the shortfall or excess. If the target cost is more than the actual cost-Preston Builders will earn a profit in excess of the desired amount. If the target cost is less than the actual cost-Preston Builders will earn less profit than is desired. In other words, Preston will have a profit shortfall. Go ahead and compute the excess or shortfall amount by completing the calculation below. Market price of similiar homes $ 205,000 Less: Desired profit 25,620 Target cost $ 179,380 vs. Current variable cost 183,000 Short fall $ 3,620 Given the current market price of $205,000, will Preston Builders be able to achieve its target profit levels? If it was determined that Preston Builders would earn excess profit in the preceding step then this means that Preston will be able to achieve the desired profit. If a profit shortfall was calculated in the preceding step it means that Preston will not be able to achieve the desired profit.Requirement 1. Which approach to pricing should Preston Builders emphasize? Why? Aoornpany's approach to pricing depends on whether its product or service is on the pricetaking or pricesetting side of the spectrum. Pricetakers emphasize a tirgmng {ousting} approach. Price-setters emphasize a Lost-M pricing approach. Keep in mind that many products fall somewhere along the continuum. Therefore, managers tend to use both approaches to some extent. Which approach is most appropriate for Preston Builders given that they build \"oookieoiter\" homes in a eroety competitive market?I Requirement 1. Which approach to pricing should Steinbarr Builders emphasize? Why? Steinbarr Builders will need to emphasize a approach to pricing because they are This means Steinbarr will control over pricing because the tract homes are V stiff competition.\fSteinbarr Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Atlanta. Land and labor are cheap, and competition among developers is fierce. The homes are a standard model, with any upgrades added by the buyer after the sale. Steinbarr Builders's costs per developed sublot are as follows:Steinbarr Builders would like to earn a profit of 14% of the variable cost of each home sold. Similar homes offered by competing builders sell for $208,000 each. Assume the company has no fixed costs.Requirements 1. Which approach to pricing should Steinbarr Builders emphasize? Why? 2. Will Steinbarr Builders be able to achieve its target profit levels? 3. Bathrooms and kitchens are typically the most important selling features of a home. Steinbarr Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $30,000 per home but would enable Steinbarr Builders to increase the sales prices by $52,500 per home. (Kitchen and bathroom upgrades typically add about 175% of their cost to the value of any home.) If Steinbarr Builders makes the upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner

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