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Sesnie Builders builds 1 , 5 0 0 - square - foot starter tract homes in the fast - growing suburbs of Hartford. Land and

Sesnie Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Hartford. Land and labor are inexpensive, and competition among developers is fierce.
The homes are "cookie-cutter," with any upgrades added by the buyer after the sale. Sesnie Builders' costs per developed sublot are as follows:
View the costs.
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 $201,000 each.
Read the requirements.
Requirement 1. Which approach to pricing should Sesnie Builders emphasize? Why?
Sesnie will need to emphasize a
approach to pricing. Because the tract homes are
stiff competition, Sesnie will
control
over pricing.
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