Rouse Builders builds townhomes in a new subdivision just outside of Montreal. Land and labour are cheap, and competition among developers is fierce. The homes in the subdivision are identical to one another, but buyers can upgrade features by paying the difference. Rouse Builders' cost per developed sublot are as follows: E: (Click the icon to view the costs.) ILUVITU UUU Score: 0.46 of 1 pt 3 of 5 (5 complete) W E8-20A (similar to) Sesnie Builders builds townhomes in a new subdivision just outside of Calgary Land and labour are cheap, and Sesnie Builders would like to earn competition among developers is fierce. The homes in the subdivision competing builders sell for $207, are identical to one another, but buyers can upgrade features by paying the difference. Sesnie Builders' cost per developed sublot are as follows: Requirements (Click the icon to view the costs.) Requirements. We approacrw pricing Stuur Se Ducers en phasize any Sesnie will need to emphasize a target-costing approach to pricing Because the tract homes are not unique and face stiff competition, Sesnle will Requirement 2. Will Sesnie Builders be able to achieve its target profit levels? Show your computations. Complete the following table to show whether Sesnie Builders will be able to achieve their target profit levels. (Use parentheses or a minus sign to indi Market price of similar homes 207000 Less Target profit Target costs VS Actual current variable cost Expected excess profit (profit shortfall) Choose from any list or enter any number in the input helds and then click Check Answer Clear All 3 parts remaining Search for anything hp Save 1 3 of 5 (5 complete) HW Score: 89.23%, 4.46 of 5 pts Question Help Calgary, Land and labour are cheap, and Sesnie Builders would like to earn a profit of 16% of the variable cost of each home sale. Similar homes offered by competing builders sell for $207,000 each Requirements g the difference. Sesnie Builders' cost per riprasizewny Because the tract homes are not unique and face stiff competition, Sesnie will not have much control over pricing fit levels? Show your computations able to achieve their target profit levels (Use parentheses or a minus sign to indicate a profit shortfall.) 00 then click Check Answer Check Answer Clear All 11:07 PM 11/26/2003 FI HP 650 hp k: MyLab#8 - Ch8 3 of 5 (5 complete) milar to) s townhomes in a new subdivision just outside of Calgary, Land and labour are cheap, and evelopers is fierce. The homes in the subdivision mother, but buyers can upgrade features by paying the difference. Sesnie Builders' cost per as follows: Sesnie Builders would like to earn a profit of 16% of the variable cost of each competing builders sell for $207,000 each Requirements o view the costs.) Data Table - X Frappucru pricing STI Se Dungers umprasize mphasize a target-costing approach to pricing. Because the will not have much control over pricing Sesnie Builders be able to achieve its target profit levels? SH g table to show whether Sesnie Builders will be able to achid Land Construction pdicate a profit shortfall.) $ 54.000 $ 121,000 $ 7,000 $ 2,000 ar homes 207000 Landscaping Variable marketing costs nt variable cost Print Done Tit (profit shortfall) or enter any number in the input fields and then click Check Answer Clear All or anything OEHT hp Ork: MyLab#8 - Ch8 pt 3 of 5 (5 complete) (similar to) wilds townhomes in a new subdivision just outside of Calgary Land and labour are cheap, and Sesnie Builders would like to earn a profit of 16% of the variab g developers is fierce. The homes in the subdivision competing builders sell for $207,000 each e another, but buyers can upgrade features by paying the difference Sesnie Builders' cost per Paris are as follows: * Requirements on to view the costs.) X er approach to pricing Soul Sesme o emphasize a target-costing approach bntrol oy 1. Which approach to pricing should Sesnie Builders emphasize? Why? Mil Sesnie Builders be able to achieve its 2. Will Sesnie Builders be able to achieve its target profit levels? Show your computations 3. Bathrooms and kitchens are typically the most important sell features of a home. Sesnie wing table to show whether Sesnie Builde Builders could differentiate the homes by upgrading bathrooms and kitchens. The upgrades fall.) would cost $20,000 per home but would enable Sesnie Builders to increase the selling prices by imilar homes $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 Sesnie Builders upgrades, what will the new cost-plus rofit price per home be? Should the company differentiate its product in this manner? Show your analysis current variable cost Print Done profit (profil shortfall) list or enter any number in the input fields and then click Check Answer Clear All arch for anything BA hip
