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Rouse Builders builda 1, E00-square-foot startor tract hames in the fan-growing suburts of Allanta. Land and labor are chesip, and competion among developen is fierce.
Rouse Builders builda 1, E00-square-foot startor tract hames in the fan-growing suburts of Allanta. Land and labor are chesip, and competion among developen is fierce. The homes are "cookie-euater," with any upgrados added by the buyer after the sab. Rouse Buldern" coot por devoloped sublot are ns follows: Rouse Bulders would the to earn a proft of 14% of the variatle onet of esch tome sale Sinilar homes offered by compotrg builen sell for 3206,000 ench. If: (Click the icon to view the eostai) Reed the reourrements Requirement 1. Which appeoach to prioing should Rouse Builden emohase? Why? Rouse will noed to emphnaize a pricing. Data table 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 $26,000 per home but would enable the company to increase the selling prices by $45,500 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
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