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Preston 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

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Preston 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. Preston Builders's costs per developed sublot are as follows: (Click the icon to view the costs.) Preston 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 $208,000 each. Assume the company has no fixed costs. Read the requirements Requirement 1. Which approach to pricing should Preston Builders emphasize? Why? Preston Builders will need to emphasize a approach to pricing because they are over pricing because the tract homes are stiff competition This means Preston will control Requirement 2. Will Preston Builders be able to achieve its target profit levels? Begin by calculating the target cost. Market price of similiar homes Less: Desired profit Choose from any list or enter any number in the input fields and then continue to the next question. Preston 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. Preston Builders's costs per developed sublot are as follows: (Click the icon to view the costs.) Preston 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 $208,000 each. Assume the company has no fixed costs. Read the requirements Requirement 1. Which approach to pricing should Preston Builders emphasize? Why? Preston Builders will need to emphasize a approach to pricing because they are over pricing because the tract homes are stiff competition This means Preston will control Requirement 2. Will Preston Builders be able to achieve its target profit levels? Begin by calculating the target cost. Market price of similiar homes Less: Desired profit Choose from any list or enter any number in the input fields and then continue to the next

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