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in Steinbar 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.

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in Steinbar 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' costs per developed sublot are as follows: (Click the icon to view the costs. Steinbarr Bulders would like to eam 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. Read the requirements Requirement 1. Which approach to pricing should Steinbarr Builders emphasize? Why? This means Steinbarr will control Steinbarr Builders will need to emphasize a over pricing because the tract homes are approach to pricing because they are stiff competition VI a standard model, with any upgrades added by the buyer Builders' costs per developed sublot are as follows: HOI TUITUS Ostered by competing Assume the company has no fixed costs. Read the requirements. 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 $28,000 per home but would enable Steinbarr Builders to increase the sales prices by $49,000 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? Print Done and then click Check Answer . ng shoul Data Table a means Steinba Land $ 52,000 124,000 Construction Landscaping Variable selling costs 8,000 3,000 Print Done

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