This Question: 15 pts 34 of 39 (9 complete) This Test: 300 pts possibl Steinbarr Builders builds 1 500-square-foot starter ract homes in the fast-growing suburbs o Atlanta. Land and labor are Steinbarr Builders would like to earn a pro at 16% o the vanable costo each home sold. Smiar homes offered by cheap, and competition among developers is fierce. The homes are a standard model, with any upgrades added by thecompeting builders sell for $207,000 each. Assume the company has no fixed costs. buyer after the sale. Steinbarr Builders's costs per developed sublot are as follows: EEB Click the icon to view the Data Table Requirements Requirement1. Which a Steinbarr Builders will need competition. Requirement 2. Will S Begin by calculating the ta Market price of similiar Less: Desired profit Target full cost per home Given the current market price and Steinbarr's current variable costs, the company will The company's profit will Requirement 3. Bathrooms and kitchens are typically the most important selling features of a home. Steinbarr Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $24,000 per home but 1. 2. 3. $53,000 123,000 6,000 2,000 Which approach to pricing should Steinbarr Builders emphasize? Why? Will Steinbarr Builders be able to achieve its target profit levels? Bathrooms and kitchens are typically the most important selling features of a home. Steinbarr Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $24,000 per home but would enable Steinbarr Builders to increase the selling prices by $42,000 per home. (Kitchen and bathroom upgrades typically add about 175% of their cost to the value of any home.) If Steinbarr Builders makes the upgrades, what will the new cost-plus price per home be? Should the company diffs product in this manner? Land stuff Variable selling costs Print Done PrintDone to achieve its desired profit. the target by S per home sale. would enable Steinba Builders o increase the selling prices by $42,000 per home. Kitch en and bathroom upgrades typ cost-olus price per home be? Should the companv differentiate its product in this manner? ally add about 175% of their cost to the value o amy home. If Steinba Builders makes the upgrades what will te e