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Requirements 1. Which approach to pricing should Rouse Builders emphasize? Why? 2. Will Rouse Builders be able to achieve its target profit levels? Show your

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Requirements 1. Which approach to pricing should Rouse Builders emphasize? Why? 2. Will Rouse Builders be able to achieve its target profit levels? Show your computations. 3. Bathrooms and kitchens are typically the most important selling features of a home. Rouse Builders could differentiate the homes by upgrading bathrooms and kitchens. The upgrades would cost $22,000 per home but would enable the company to increase the selling prices by $38,500 per home (in general, kitchen and bathroom upgrades typically add at least 150% of their cost to the value of any home.) If Rouse Builders upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? Show your analysis. Data table Rouse Bulders buids 1,500-square-foot starter tract homes in the tast-growing suburbs of Abary. Land and labor are cheap, and compelision among developers is ferce. The homes are "cookie-culter" with any upgrades added by the buyer after the sale. Rouse Bulders' cost pet developed sublot are as follows (Click the icon to Viaw the costs.) Rouse Bulders would like to earn a profit of 14% of the variable cost of each home sale. Similar homes oftered by competing bulders sell for $204,000 oach Read the requirements Requirement 1. Which approach to priaing should Rouse Bulders erphasize? Why? Rouse will need to emphasixe a approach to poing Becaule the tract homos are stiff competion, Fiouse wat control aver pricing. Requirement 2 Wa Rouse Bulders be able to achieve hs target peoff levels? Show your compuations

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