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Please help! i need this asap Rolling Builders builds 1,500 square foot starter tract homes in the fast-growing suburbs of Atlanta. Land and laborare cheap,
Please help! i need this asap Rolling Builders builds 1,500 square foot starter tract homes in the fast-growing suburbs of Atlanta. Land and laborare cheap, and competition among developers is fierce. The homes are a standard model with any upgrades added by the buyer after the sale Rolling Builders' costs per developed sublot are as follows: Rolling Builders would like to cam a profit of 14% of the variable cost of each home sold. Similar homes offered by competing builders sell for $202.000 each. Assume the company has no fixed costs. Read the requirements Requirement 1. Which approach to pricing should Rolling Builders emphasize? Why? Roling Builders will need to emphasize a approach to pricing because they are homes are stiff competition This means Rofing will control over pricing because the trad Requirement 2. Will Rolling Builders be able to achieve its target profit levels? Begin by calculating the target cost. Market price of similar homes Less Desired profit Given the current market price and Rolling's current variable costs, the company wil to achieve its desired profit The company's proft wil the target by $ per home sale Requirement 3. Bathrooms and Kitchens are typically the most important selling features of a home Rolling Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $28,000 per home but would enable Rolling Builders to increase the sales prions by $49,000 per home Kitchen and bathroom upgrades typically add about 175% of the cost to the value of any home) Roling Builders makes the upgrades, what will the new cost plus price per home be? Should the company differentiis product in this manner? Calculate the new cost.plus price per home Current variable cost per home Plus: Variable cost of Kitchen and bathroom corde et home Choose from any list of enter any number in the input fields and then continue to the next question Plus: Variable cost of kitchen and bathroom upgrade per home Total variable cost per home Plus: Desired profit per home Cost-plus price per home Should the company differentiate its product in this manner? The new cost-plus price per home, with bath and kitchen upgrades, is actually the expected market price of an upgraded house, If Rolling can sell the upgraded homes for $251,000, as expected, he will com his desired profit. Rolling upgrade the bathrooms and kitchens so that he has control over pricing Choose from any list or enter any number in the input fields and then continue to the next question. 3 of 4 (4 complete) e-foot starter tract homes in the fast-growing suburbs of and cor added Requirements Rolling Builders would like to earn a profit of 14% of the varia each. 1. Which approach to pricing should Rolling Builders emphasize? Why? 2. Will Rolling Builders be able to achieve its target profit levels? 3. Bathrooms and kitchens are typically the most important selling features of a home. Rolling Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $28,000 per home but would enable Rolling Builders to increase the sales prices by $49,000 per home. (Kitchen and bathroom upgrades typically add about 175% of their cost to the value of any home.) If Rolling Builders makes the upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? is produd with bat sellt Print Done number in the input fields and then continue to the next question. Fast-growing suburbs of ers is fierce. The homes are a Rolling Builders would like to ea homes offered by competing bui ler Data Table Land Construction Landscaping Variable selling costs 56,000 125,000 3,000 5,000 es, is raded Print Done and then continue to the next
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