Bennett Builders builds $1,500-$square$-$foot starter tract homes in the fast$-$growing suburbs of Chicago. Land and labor are inexpensive, and competition among developers is fierce. The

homes are "cookie$-$cutter," with any upgrades added by the buyer after the sale. Bennett Builders' costs per developed sublot are as follows:

View the costs.

BennettBuilders would like to eam a profit of $1585$ the variable cost of each home sale. Similar homes offered by competing builders sell for $$204,000$ each.

Read the requirements.

Requirement $1.$ Which approach to pricing should Bennett Builders emphasize? Why?

Bennett will need to emphasize a

approach to pricing. Because the tract homes are

stiff competition, Bennett will

control

over pricing.