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JIFFICI W Question Help Rouse Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Tulsa Land and labor are cheap, and competition among
JIFFICI W Question Help Rouse Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Tulsa Land and labor are cheap, and competition among developers is fierce. The homes are "cookie-cutter," with any upgrades added by the buyer after the sale. Rouse Builders' cost per developed sublot are as follows: (Click the icon to view the costs.) Rouse Builders would like earn a profit of 15% of the variable cost of each home sale. Similar homes offered by competing builders sell for 5207.000 each Read the requirements wwwyuyu Complete the following table to show whether Rouse Builders will be able to achieve their target profit levels. (Use parentheses or a minus sign to indicate a profit shortfall) Total fixed co Less Target cost per home Less Choose from any list or enter any number in the input fields and then click Check Answer. Total fixed costs Less: Target cost per home Less: Expected excess profit (profit shortfall) i Requirements 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 kitchens 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 $26,000 per home but would enable the company to increase the selling prices by $45,500 per home (in general, kitchen and bathroom upgrades typically add at least 150% of their cost to the value of any home.) If Rouse Builders upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? Show your analysis por are cheap, and competition Leach home sale. Similar homes of 1 Data Table 52,000 Land ...............................$ Construction.. $ Landscaping ........$ Variable marketing costs. $ 123,000 7,000 5,000 Print Done Ir in the input fields and then click Check
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