Requirement 3. Bathrooms and kitchens are typically the most important selling features of a home. Root Builders could differentiate the homes by upgrading bathrooms
Requirement 3. Bathrooms and kitchens are typically the most important selling features of a home. Root Builders could differentiate the homes by upgrading bathrooms and kitchens. The upgrades would cost $30,000 per home but would enable the company to increase the selling prices by $52,500 per home (in general, kitchen and bathroom upgrades typically add at least 150% of their cost to the value of any home.) If Root 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
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