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 i 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 $205,000 each. Assume the company has no fixed costs Read the requirements ama Requirement 1. Which approach to pricing should Preston Builders emphasize? Why? Preston Builders will need to emphasize a target-costing approach to pricing because they are price-takers over pricing because the tract homes are not unique and face stiff competition Requirement 2. Will Preston Builders be able to achieve its target profit levels? Begin by calculating the target cost This means Preston will not have much control Market price of similar homes Less: Desired profit Target full cost per home 205000 Help me solve this Demodocs example Get more help - Clear all Check answe