ls make it easy to read and typed out if possible
1. Which approach to pricing should Sesnie Builders emphasize? Why? 2. Will Sesnie Builders be able to achieve its target profit levels? Show your computations. B. Bathrooms and kitchens are typically the most important selling features of a home. Sesnie Builders could differentiate the homes by upgrading bathrooms and kitchens. The upgrades would cost $30,000 per home but would enable the company to increase the selling prices by $52,500 per home (in general, kitchen and bathroom upgrades typically add at least 150% of th cost to the value of any home.) If Sesnie Builders upgrades, what will the new cost-plus pricep home be? Should the company differentiate its product in this manner? Show your analysis. - Data table Land $ $ 52,000 .. Construction. ... $ 121,000 tfall $ 7,000 . Landscaping Variable marketing costs .... Se $ 2,000 achieve I sh Sesnie Builders builds 1.500-square-foot starter tract homes in the fast-growing suburbs of Chicago. 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. Sesnie Builders' cost per developed sublot are as follows: (Click the icon to view the costs.) Sonnie Builders would like to cam a profit of 15% of the variable cost of each home sale. Similar homes offered by competing builders soll for $205,000 each Read the four comand Requirement 1. Which approach to pricing should Sesnie Builders emphasize? Why? Sesnio will need to emphasize a target-costing approach to pricing. Because the tract homes are not unique and face stiff competition, Sesnie will not have much control over pricing Requirement 2. Will Sesnie Builders be able to achieve its target profit levels? Show your computations. Complete the following table to show whether Sesnie Builders will be able to achieve their target profit levels. (Use parentheses or a minus sign to indicate a profit shortfall.) Revenue at market price $ 205,000 27,300 Less: Desired profit Target cost per home $ 177,700 182,000 Less: Actual current variable cost Expected excess profit (profit shortfall) $ (4,300) not be able to to achieve Given the current market price and Sesnie Builder's current variable costs, the company will it tomat mo na fall shirt $4300 na hema este Less: Actual current variable cost Expected excess profit (profit shortfall) 182,000 (4.300) Given the current market price and Sesnie Builder's current variable costs, the company wil not be able to to achieve its target profit. Its profit will fall short by $ 4,300 per home sale Requirement 3. Bathrooms and kitchens are typically the most important selling features of a home. Sesnie Builders could differentiate the homes by upgrading bathrooms and Kitchens. The upgrades would cost $30,000 per home but would enable the company to increase the selling prices by $52,500 per home fin general, kitchen and bathroom upgrades typically add at least 150% of their cost to the value of any home.) If Sesnie Builders upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? Show your analysis. Compute the new cost-plus price per home. Plus Total variable costs Plus Cost.plus price
