Setback Builders builds 1 500 square foot starter tract homes in the fast growing suburbs of Richmond. Land and labor are cheap, and competition among developers is fierce. The homes are a standard model, with any upgrades added by the buyer after the sale. Setback Builders' costs per developed sublet are as follows: Setback 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 $208,000 each. Assume the company has no fixed costs. Requirements: Will Setback Builders be able to achieve its target profit levels? Compute the target full product cost Bathrooms and kitchens are typically the most important selling features of a home. Setback Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $22,000 per home but would enable Setback Builders to increase the selling prices by $38, 500 per home. (Kitchen and bathroom upgrades typically add about 175% of their cost to the value of any home.) If Setback Builders makes the upgrades, what will the new cost-plus price per home be