Preston 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 fierce. The homes are a standard model, with any upgrades added by the buyer after the sale. Preston Builders's costs per developed sublot are as follows (Click the icon to view the costs) - X Requirements 1. Which approach to pricing should Preston Builders emphasize? Why? 2. Will Preston Builders be able to achieve its target profe levels? 1. Bathrooms and kitchens are typically the most important selling features of a home. Preston Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $25,000 per home but would enable Preston Builders to increase the sales prices by $43.750 per home (Kitchen and bathroom upgrades typically add about 175% of their cost to the value of any home) If Preston Builders makes the upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? Print Done Preston Builders would like to eam a profit of 16% of the variable cost of each home sold by competing builders sell for $206.000 each. Assume the company has no fixed costs. Read the requirements Data table re not unique and ta Land $ 55,000 121,000 Construction Landscaping Variable selling costs 6,000 4,000 Print Prestor Done Preston 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 fierce. The homes are a standard model, with any upgrades added by the buyer after the sale. Preston Builders's costs per developed sublot are as follows (Click the icon to view the costs) - X Requirements 1. Which approach to pricing should Preston Builders emphasize? Why? 2. Will Preston Builders be able to achieve its target profe levels? 1. Bathrooms and kitchens are typically the most important selling features of a home. Preston Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $25,000 per home but would enable Preston Builders to increase the sales prices by $43.750 per home (Kitchen and bathroom upgrades typically add about 175% of their cost to the value of any home) If Preston Builders makes the upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? Print Done Preston Builders would like to eam a profit of 16% of the variable cost of each home sold by competing builders sell for $206.000 each. Assume the company has no fixed costs. Read the requirements Data table re not unique and ta Land $ 55,000 121,000 Construction Landscaping Variable selling costs 6,000 4,000 Print Prestor Done