Kyler Buinders builds 1,500-square-foot starter tract homes in the fast growing Kyler Builders would like to earn a profit of 14% of the variable cost of each suburbs of Aflanta. Land and labor are cheap, and competilion among developers is home sold Similar homes offered by competing builders sell for \$205,000 fierce The homes ate a standard model, with any upgrades added by the bryer after each. Assume the company has no fixed costs the sale. Kyler Buiders' costs per developed sublot are as follows Read the teguitements IIt (Click the icon to viow the costs ). Requirements Requiremer Kyler Bulider 1. Which approach to pricing should Kyler Buiders enphaslae? Why? 2. Will Kyler Bulders be able to achieve its target profit levels? 3. Bathrooms and kithens are typically the most important seling features of a home Kyler Bulders could differentiate the homes by upgrading the bathrooms and kicheos. The upgrades would cost $28,000 per home but would enable Kyler Bullders to increase the sales prices by. $49.000 per home (Kitchen and bathroom upgrades typically add aboul 175% of their cost to the value of any home.) If Kyler Beilders makes the upgrades, What will the new cost plus price par home be? Should the company diterentiate its product in this manne?? Data table Kyler Buinders builds 1,500-square-foot starter tract homes in the fast growing Kyler Builders would like to earn a profit of 14% of the variable cost of each suburbs of Aflanta. Land and labor are cheap, and competilion among developers is home sold Similar homes offered by competing builders sell for \$205,000 fierce The homes ate a standard model, with any upgrades added by the bryer after each. Assume the company has no fixed costs the sale. Kyler Buiders' costs per developed sublot are as follows Read the teguitements IIt (Click the icon to viow the costs ). Requirements Requiremer Kyler Bulider 1. Which approach to pricing should Kyler Buiders enphaslae? Why? 2. Will Kyler Bulders be able to achieve its target profit levels? 3. Bathrooms and kithens are typically the most important seling features of a home Kyler Bulders could differentiate the homes by upgrading the bathrooms and kicheos. The upgrades would cost $28,000 per home but would enable Kyler Bullders to increase the sales prices by. $49.000 per home (Kitchen and bathroom upgrades typically add aboul 175% of their cost to the value of any home.) If Kyler Beilders makes the upgrades, What will the new cost plus price par home be? Should the company diterentiate its product in this manne?? Data table
