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 Rolling Builders would like to earn a profit of 16% of the variable cost of each home sold. Similar homes offered by competing builders sell for developers is fierce. The homes are a standard model, with any upgrades added by the buyer after the sale. Rolling Builders's costs per developed $200,000 each. Assume the company has no fixed costs. sublot are as follows: Read the requirements. E: (Click the icon to view the costs.) 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 Data Table Land $ 54,000 Construction Landscaping Variable selling costs 125,000 4,000 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 $28,000 per home but would enable Rolling Builders to increase the sales prices by $49,000 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? 3,000 Print Done Print Done