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Steinbar Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Atlanta. Land and labor are cheap, and competition among developers is Serce.
Steinbar Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Atlanta. Land and labor are cheap, and competition among developers is Serce. The homes are a standard model, with any upgrades added by the buyer after the sale. Steinbarr Builders' costs per developed sublot are as follows: (Click the icon to view the costs) Steinbar Builders would like to eam a profit of 14% of the variable cost of each home sold Similar homes offered by competing builders sell for $209,000 each Assume the company has no fixed costs Read the requirements Requirement 1. Which approach to pricing should Steinbarr Builders emphasize? Why? Steinbar Builders will need to emphasize a because the tract homes are approach to pricing because they are This means Steinbart will control over pricing stiff competition
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