Score: 0.58 of 5 pts 1 of 3 (3 complete) Question Help E8-19A (similar to) Route Builders builds 1,500 square foot starter tract homes in the fast-growing suburbs of Tulsa Land und laborare cheap, and competition among developers is fierce. The homes are "cookie cutter with any upgrades added by the buyer after the sale. Rouse Builders' cost per developed sublot are as follows: mm Click the icon to view the costs) Rouse Builders would like to eam a profit of 10% of the variable cost of each home sale Similar homes offered by competing builders sell for $206,000 each Read the requirements Requirement 1. Which approach to pricing should Rouse Builders emphasize? Why? Rouse will need to emphasize a tarpet-costing approach to pricing. Because the tract homes are not unique and face stiff competition, Rouse will not have much control over pricing. Requirement 2. Wil Rouse Builders be able to achieve its target profit levels? Show your computations Complete the following table to show whether Route Builders will be able to achieve their target profit lovels (Une parentheses or a minun sign to indicate a profit shortfall) Less Target cost per home Expected excess profit (profit shortfall) Homework H 1 of 3 (3 complete) mes in the fast-growing suburbs of ng developers is fierce. The homes are after the sale. Rouse Builders' cost per Rouse Builders would like to earn a profit of 16% of th Similar homes offered by competing builders sell for $ Read the requirements. use Bui Data Table - Dach to bmpetition, Rouse will ve its tar Land.. Builders a minus sign to indicat Construction...1 Landscaping. Variable marketing costs $ 54,000 $ 122.000 S 7,000 S 2,000 Print Done input fields and then click Check Answer Clear All cil 1 @@ cer 8 Homework 1 of 3 (3 complete) HWS tarter tract homes in the fast-growing suburbs of mpetition among developers is fierce. The homes are by the buyer after the sale. Rouse Builders' cost per Rouse Builders would like to earn a profit of 16% of the vari Similar homes offered by competing builders sell for $206,0 Read the requirements. Requirements Requirements not te a pr 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 $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 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. Print Done mber in the input fields and then click Check Answer Clear All
