Kyler 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. Kyler Builders's costs per developed sublot are as follows: (Click the icon to view the costs.) Kyler 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 $205,000 each. Assume the company has no fixed costs. Read the requirements. Requirement 1. Which approach to pricing should Kyler Builders emphasize? Why? Kyler Builders will need to emphasize a approach to pricing because they are stiff competition. Requirement 2. Will Kyler Builders be able to achieve its target profit levels? Begin by calculating the target cost. Given the current market price and Kyler's current variable costs, the company will The company's profit will the target by This means Kyler will control over pricing because the tract homes are Data table per home sale. to achieve its desired profit