Question: please help with requirment 2 and 3 Root Buliders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Aflanta. Root Bullders would tike to


Root Buliders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Aflanta. Root Bullders would tike to earn a proff of 14% of the variable cost of each home sold. Land and labor are cheap, and competton among developers is fiecce. The homes are a Similar homes otlered by competing builders sell for $209,000 each. Assume the standard model, with any upgrades added by the buyer after the sale. Root Bulders' costs per company has no fored costs. developed sublot are as follows: (Click the icon to view the cosis.) Fiead the Requirement 1. Which approach to pricing should Root Builders emphasize? Why? Rool Builders will need to emphasize a approach to pricing becsuse they are This means Root will control over peicing because the tract homes are sirt compestion. Requirement 2. Wit Root Builders be able to achieve its target proff levels? Data table Requirements 1. Which approach to pricing should Root Builders emphasize? Why? 2. Will Root Builders be able to achieve its target profit levels? 3. Bathrooms and kitchens are typically the most important selling features of a home. Root Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $14,000 per home but would enable Root Builders to increase the sales prices by $24,500 per home. (Kitchen and bathroom upgrades typically add about 175% of their cost to the value of any home.) If Root Builders makes the upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? Root Buliders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Aflanta. Root Bullders would tike to earn a proff of 14% of the variable cost of each home sold. Land and labor are cheap, and competton among developers is fiecce. The homes are a Similar homes otlered by competing builders sell for $209,000 each. Assume the standard model, with any upgrades added by the buyer after the sale. Root Bulders' costs per company has no fored costs. developed sublot are as follows: (Click the icon to view the cosis.) Fiead the Requirement 1. Which approach to pricing should Root Builders emphasize? Why? Rool Builders will need to emphasize a approach to pricing becsuse they are This means Root will control over peicing because the tract homes are sirt compestion. Requirement 2. Wit Root Builders be able to achieve its target proff levels? Data table Requirements 1. Which approach to pricing should Root Builders emphasize? Why? 2. Will Root Builders be able to achieve its target profit levels? 3. Bathrooms and kitchens are typically the most important selling features of a home. Root Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $14,000 per home but would enable Root Builders to increase the sales prices by $24,500 per home. (Kitchen and bathroom upgrades typically add about 175% of their cost to the value of any home.) If Root Builders makes the upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner
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