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Kyler Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Hartford. Land and labor are cheap, and competition among developers is fierce. The
Kyler Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Hartford. 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. Kyler Builders' cost per developed sublot are as follows: (Click the icon to view the costs.) Requirement 1. Which approach to pricing should Kyler Builders emphasize? Why? Kyler will need to emphasize a approach to pricing. Because the tract homes are stiff competition, Kyler will control over pricing. Kyler Builders would like to earn a profit of 15% of the variable cost of each home sale. Similar homes offered by competing builders sell for $206,000 each. Read the requirements
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