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Requirement 1. Which approach to pricing should Rolling Bulders emphasize? Why? Rolling Bulders will need to emphasize a approach lo pricing because they are This
Requirement 1. Which approach to pricing should Rolling Bulders emphasize? Why? Rolling Bulders will need to emphasize a approach lo pricing because they are This means Roling wit contral over priaing because the tract homes are stit competion. Requirement 2 . Will Roling Bulders be able to achieve its target proft levels? Begin by calculating the target cost. Market price of similiar homes Less: Desired proft Rolling 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. Rolling Builders' costs per developed sublot are as follows: (Click the icon to view the costs.) Rolling 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 $202,000 each. Assume the company has no fixed costs. Read the Requirement 1. Which approach to pricing should Rolling Builders emphasize? Why? Rolling Builders will need to emphasize a approach to pricing because they are This means Rolling will control over pricing because the tract homes are stiff competition. Requirements 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 $24,000 per home but would enable Rolling Builders to increase the sales prices by $42,000 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? Given the current market price and Rolling's current variable costs, the company wil to achieve is desired profit. The cempary/s proft wil the target by $ per home sale. Calculate the new cost-plus price per home. Current variable cest per home Plus: Variable cost of kitchen and bathroom ucarade oet hare Choose from any list or enter any number in the input fields and then continue to the next
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