Requirement $3.$ Bathrooms and kitchens are typically the most important selling features of a home.

DominicDominic

Builders could differentiate the homes by upgrading bathrooms and kitchens. The upgrades would cost

$ $20$ comma $000$$$20,000$

per home but would enable the company to increase the selling prices by

$ $35$ comma $000$$$35,000$

per home$($in general, kitchen and bathroom upgrades typically add at least$150\%$ of their cost to the value of any$$ home$).$ If

DominicDominic

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

$$