%EB-19A (similar to) Question Help * Gildea Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Boston. 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. Gildea Builders' cost per developed sublot are as follows: Gildea Builders would like to earn a profit of 15% of the variable cost of each home sale Similar homes offered by competing builders sell for $202,000 each. Read the requirements. ?(Click the icon to view the costs.) Requirement 1. Which approach to pricing should Gildea Builders emphasize? Why? Gildea will need to emphasize a target-costing approach to pricing. Because the tract homes are not unique and face pricing. Requirement 2. Will Gildea Builders be able to achieve its Data Table Complete the following table to show whether Gildea Build Revenue at market price Less: Desired profit Target cost per home Less: Actual current variable cost Expected excess profit (profit shortfall) stiff competition, Gildea will not have much control over r a minus sign to indicate a profit shortfall.) Land Construction Landscaping Variable marketing costs ....$ 54,000 ....$ 126,000 .$5,000 1,000 Print Done %EB-19A (similar to) Question Help * Gildea Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Boston. 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. Gildea Builders' cost per developed sublot are as follows: Gildea Builders would like to earn a profit of 15% of the variable cost of each home sale Similar homes offered by competing builders sell for $202,000 each. Read the requirements. ?(Click the icon to view the costs.) Requirement 1. Which approach to pricing should Gildea Builders emphasize? Why? Gildea will need to emphasize a target-costing approach to pricing. Because the tract homes are not unique and face pricing. Requirement 2. Will Gildea Builders be able to achieve its Data Table Complete the following table to show whether Gildea Build Revenue at market price Less: Desired profit Target cost per home Less: Actual current variable cost Expected excess profit (profit shortfall) stiff competition, Gildea will not have much control over r a minus sign to indicate a profit shortfall.) Land Construction Landscaping Variable marketing costs ....$ 54,000 ....$ 126,000 .$5,000 1,000 Print Done