Smith Builders buils 1,500-8quare foot starter tract homes in the fast-growing suburbs of Atlanta Land and labor are cheap, and compettion ameng developers is ferce. The homes are a Smith Buliders would like to eam a proti of 14% of the variable cost of each home sold. standard model, with any upgrades added by the buyer aber the salo. Smith Buildecs' costs per Simlar hemes offered by competing buildors sel for $203,000 each. Assume the developed sublot are as follows: company has no fured costa (Click the icon to view the costs) Read the requirements. Requirement 1. Which approach to pricing should Smah Bullders emphasize? Why? Smith Bullders wil need to enchasize a approach to pricing because they are This means Smith wal are stifl competaion. Requirements 1. Which asproach to prichg should smith tlulders emphanite? Why? 2. Wil smith Bulders be able to achieve is target proct ieves? 3. Batheoms and kichens are typically the moet impotant seling folures of a nome. Smith Bualderi could diferentiste the homes by upgrading the bathrooms and kectens. The uporaden would cost $2,000 per home bul would enable sinth 0ulders to inerase the sales prces by 53s soo per home. (Kachen and bathroem ugorades fyicaly add about 175% of ther oot to the value of amy home ) If Smith Bulders makes the upgrades, what wat the new cest-plis price per home be? Should the compary difwertiale es product in ifis marner