Requirement 1. Which approach to pricing should Bayville Builders emphasize? Why? Bayville will need to emphasize a approach to pricing. Because the townhomes are v stiff competition, Bayville will control over pricing. Requirement 2. Will Bayville Builders be able to achieve its target profit levels? Show your computations. Complete the following table to show whether Bayville Builders will be able to achieve the target profit level. (Use parentheses or a minus sign to indicate a profit shortfall.) Less: Costs Target costs VS: Land $ 60,000 Expected excess profit (profit shortfall) Construction $ 121,000 Given the current market price and Bayville's current variable costs, the con $ 6,000 ds of the target profit by $ per home sale. Landscaping Variable marketing costs $ 2,200 Requirement 3. Bathrooms and kitchens are typically the most important se enable Bayville Builders to increase the selling prices by $45,600 per home price per home be? Should the company differentiate its product in this mar ading bathrooms and kitchens. The upgrades would cost $24,000 per home but would cost to the value of any home.) If Bayville Builders upgrades, what will the new cost-plus Compute the new cost-plus price per home. Print Done Requirement 3. Bathrooms and kitchens are typically the most important selling features of a home. Bayville Builders could differentiate the homes by upgrading bathrooms and kitchens. The upgrades would cost $24,000 per home but would enable Bayville Builders to increase the selling prices by $45,600 per home. (In general, kitchen and bathroom upgrades typically add at least 150% of their cost to the value of any home.) If Bayville 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 What is the expected market selling price of the homes with the upgrades? The expected market price would be $. The new cost-plus price, with bath and kitchen upgrades, is the expected market price of an upgraded house. If Bayville can sell the upgraded homes for the expected market prices, the company will earn profit. Bayville v upgrade the bathrooms and kitchens so that it has control over pricing. the target