Please use the data table provided in the first photo for the following 3 requirements. The drop down options are provided in the photos.

McKee Builders builds 1,500-square-foot starter tract McKee Builders would like to earn homes in the fast-growing suburbs of Atlanta. Land and of the variable cost of each home s labor are cheap, and competition among developers is homes offered by competing builder fierce. The homes are a standard model, with any $209,000 each. Assume the compar B Data table ad the requirements. hasize? Why? pricing because they are act homes are levels? Target full cost per home Given the current market price and McKee's current variable costs, the company will McKee Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Atlanta. Land and McKee Builders would like to earn a profit of 14% labor are cheap, and competition among developers is of the variable cost of each home sold. Similar fierce. The homes are a standard model, with any homes offered by competing builders sell for upgrades added by the buyer after the sale. McKee $209,000 each. Assume the company has no fixed Builders' costs per developed sublot are as follows: costs. [Click the icon to view the costs.) Read the requirements. Requirement 1. Which approach to pricing should McKee Builders emphasize? Why? McKee Builders will need to emphasize a alproach to pricing because they are This means McKee will control over pricing because the tract homes are stiff competition. Requirement 2. Will McKee Builders be able to achieve its target profit levels? Begin by calculating the target cost. Given the current market price and McKee's current variable costs, the company will to achieve its desired profit. The company's profit will the target by per home sale. Mckee Builders builds 1,500-square-foot starter tract McKee Builders would like to earn a profit of 14% homes in the fast-growing suburbs of Atlanta. Land and of the variable cost of each home sold. Similar labor are cheap, and competition among developers is homes offered by competing builders sell for fierce. The homes are a standard model, with any $209,000 each. Assume the company has no fixed upgrades added by the buyer after the sale. McKee costs. Builders' costs per developed sublot are as follows: (Click the icon to view the costs.) Read the requirements. company will to achieve its desired profit. The company's profit will the target by per home sale. Requirement 3. Bathrooms and kitchens are typically the most important selling features of a home. McKee Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $26,000 per home but would enable McKee Builders to increase the sales prices by $45,500 per home. (Kitchen and bathroom upgrades typically add about 175% of their cost to the value of any home.) If McKee Builders makes the upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? typically add about 175% of their cost to the value of any home.) If McKee Builders makes the upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? Calculate the new 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 McKee can sell the upgraded homes for $254,500, as expected, he will earn desired profit. McKeo upgrade the bathrooms and kitchens so that he has control over pricing. Requirement 1. Which approach to pricing should McKee Builders emphasize? Why? McKee Builders will need to emphasize a approach to pricing because they are This means Mckee will contr 1e tract homes are stiff competition. Requirement 2. Will McKee Builders be a cost-plus ofit levels? Begin by calculating the target cost. Market price of similiar homes Less: Desired profit Target full cost per home kequirement 1. Which approach to pricing should McKee Builders emphasize? Why? McKee Builders will need to emphasize a approach to pricing because they are This means McKee will control over pricing because the tract homes are competition. Requirement 2. Will McKee Builders be able to achieve its target profit levels? price-setters. Begin by calculating the target cost. Market price of similiar homes price-takers. Requirement 1. Which approach to pricing should McKee Builders emphasize? Why? McKee Builders will need to emphasize a approach to pricing because they are means McKee will control over pricing because the tract homes are competition. i) Requirement 2. W achieve its target profit levels? Begin by calculatin! have significant Market price of sim not have much Less: Desired profi. Target full cost per home Given the current market price and McKee's current variable costs, the company wiII to achieve its desired profft. Requirement 1. Which approach to pricing should McKee Builders emphasize? Why? McKee Builders will need to emphasize a approach to pricing because they are This means Mckee will control over pricing because the tract homes are competition. Requirement 2. Will McKee Builders be able to achieve its target profit levels? Begin by calculating the target cost. The new cost-plus price per home, with bath and kitchen upgrades, is actually the expected market price of an upgraded house. If McKee can sell the upgraded homes for $254,500, as expected, he will eam his desired profi. Mckee upgrade the bathrooms and kitchens so that he has control over pricing. of an upgraded house. If McKee can sell the upgraded homes for $254,500, as expected, he will earm desired proft. Mckee upgrade the bathrooms and kitchens so that he has control over pricing. Plus: Desired profit perhnma Cost-plus price per ho Should the company d should in this manner? The new cost-plus pric should not and kitchen upgrads, is actually the expected market price of an upgraded house. upgraded homes for $254,500, as expected, he will earn desired profit. McKee upgrade the bathrooms and kitchens so that he has control over pricing. Plus: Desired profit per home Cost-plus price per home equal Should the company differentiate its product in this manner? less The new cost-plus price per home, with bath and kitchen upgrades, is actually of an upgraded house. If McKee can sell the upgraded homes for $254,500, as expecter more Imarket price his desired profit. Mckee upgrade the bathrooms and kitchens so that he has control over pricing