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Sesnie Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Hartord. Land and labor are inexpensive, and competition among developers is fierce. The

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Sesnie Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Hartord. 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. Seshie Bulders' costs per developed sublot are as follows: View the costs. Sesnie Builders would like to earn a profit of 15% of the variable cost of each home sale. Similar homes offered by competing builders sell far $205,000 each. Read the requirements. Requirement 1. Which approach to pricing should Sesnie Buiders emphasize? Why? Sesnie will need to emphasize a control over pricing approach to pricing. Because the tract homes are not uniqu Costs Requirements 1. Which approsch lo pricing should Sessie Bulders emphasize? Why? 2. Wil Sesnie Bulders be able to achieve la target profit levels? Show your. computations. 3. Bathrooms and kithens are typicaly the most important seling foatures of a home. Sesnie Bulders could differentiate the homes by upgrading bathrooms and kilchens. The upgrades would cost $22,000 per home but would enable the company to increase the seling phices by 5338,500 per home (in general, kilchen and bathroom upgrades typicaly add at lieast 150N of their cost to the value of ary home), if Sesnie Bulders upgrades, what will the new cost-plus price per home be? Should the company difterentide its product in this manner? Show your analysi

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