Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

View Requirement 1. Which approach to pricing should Kyler Buldos emphasize? Why? price setters This means Kyler will not have much control over Kyler Builders

image text in transcribed
image text in transcribed
image text in transcribed
View Requirement 1. Which approach to pricing should Kyler Buldos emphasize? Why? price setters This means Kyler will not have much control over Kyler Builders will need to emphasize a target costing approach pricing because the tract homes are not unique and fa Requirement 2. Will Kyler Builders be able to achieve Begin by Calculating the target cost Market price of me homes Loss Desired profit Togetto cost per home I. Given the current market.co The company's probe wa . 599 3911 to achieve its desired prot por home sale. collintoarse name w ater Vie Requirement 3. Bathrooms and kitchens are typically the most important selling features of a home, Kyler Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $12,000 por home but would enable Kylor Builders to increase the sales prices by $21,000 per home. (Kitchen and bathroom upgrades typically add about 175% of the cost to the value of any home ) If Kylor Builders makes the upgrades, what will the new cost plus price por home be? Should the company differentiate its product in this manner? Calculate the new cost.plus price per homo Current variable cost per home Plus: Variable cost of kitchen and bathroom upgrade per home Total variable cost per home Plus Desired profit per home Cost.plus price per home Should the company differentiate its product in this manner? The new cost plus price per home, with both and kitchen upgrades, is actually the expected market price of an upgraded house. If Kylor can sell the upgraded homes for $230,000, as expected, he will earn his desired profit. Kylor upgrade the bathrooms and kitchens so that he has control over pricing Kyler Builders builds 1,500 square fool starter tract homes in the fast-grow ng Kylor Builders would like to earn a profit of 10% of the variable cost of each home Suburbs of Atlanta Land and laborare cheap, and competition among developers sold Similar homes offered by competing builders sel for $209,000 each. Assume is herce. The homes are a standard model, with any upgrades added by the buyer the company has no fixed costs after the sale Kylor Builders's costs por dovolopod sublot ate as foliows (Click the icon to vow the costs) Read the requirements View by X 0 udors emphasce? Why? Data Table pproach to pricing bocause they are price sotters. This means Kylor will not have much control over S 51,000 E Land Construction Landscaping Variable soting costs 1000 2.000 Point Done costs, the company will to achieve is desired profil The company's prot wil the ligt by per home sale Requirement 3 Bathrooms and chans are typically the most important selling features of a home Kylor Buders could differentiate the homes by upgrading the bathrooms and kitchens The upgrades would cost $12,000 per home but would not Kylor Builders to increase the sales prices by $21.000 per home Kitchen and bathroom upgrades typically add about 175% of their cost to the value of any home) ir Kyler Builders makes the upgrades what will the new cost plus price por Choose from any list of enter any number in the input fields and then continue to the next question UM Dashboards

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Organisation Shadow Side Audit

Authors: W Tate

1st Edition

1902433971, 978-1902433974

More Books

Students also viewed these Accounting questions

Question

e. What difficulties did they encounter?

Answered: 1 week ago