Bennett Builders builds $1,500-$square$-$foot starter tract homes in the fast$-$growing suburbs of Chicago. Land and labor are cheap, and competition among developers is fierce. The homes are "cookie$-$cutter," with any upgrades added by the buyer after the sale. Bennett Builders' cost per developed sublot are as follows:

$($Click the icon to view the costs.$)$

Bennett Builders would like to earn a profit of $14\%$ of the variable cost of each home sale. Similar homes offered by competing builders sell for $$205,000$ 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.

Requirement $2.$ Will Bennett Builders be able to achieve its target profit levels? Show your computations

Complete the following table to show whether Bennett Builders will be able to achieve their target profit levels. $($Use parentheses or a minus sign to indicate a profit shortfall.$)$

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Data table

$\backslash$table$[[$Land$.,$$$,54,000],[$Construction$..,$$$,124,000],[$Landscaping$.............,.$$$,9,000],[$Variable marketing costs,$$,3,000]]$

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Done

Jo achieve

Cost$-$plus price

The new cost$-$plus price, with bath and kitchen upgrades, is actually bathrooms and kitchens so that it has $$ control over pricing. the expected market price of an upgraded house. If Bennett can sell the upgraded homes for $$257,500,$ as expected, it will earn $$ its target profit. Bennett $$ upgrade the Activate Windows