Question: stiff competition, Kyler will Data Table Land.... $ 50,000 Construction... $ 128,000 $ Landscaping..... Variable marketing costs ... 5,000 ....$ 3,000 Print Done Requirements X



stiff competition, Kyler will Data Table Land.... $ 50,000 Construction... $ 128,000 $ Landscaping..... Variable marketing costs ... 5,000 ....$ 3,000 Print Done Requirements X 1. Which approach to pricing should Kyler Builders emphasize? Why? 2. Will Kyler Builders be able to achieve its target profit levels? Show your computations. 3. Bathrooms and kitchens are typically the most important selling features of a home, Kyler Builders could differentiate the homes by upgrading bathrooms and kitchens. The upgrades would cost $28,000 per home but would enable the company to increase the selling prices by $49,000 per home in general, kitchen and bathroom upgrades typically add at least 150% of their cost to the value of any home.) If Kyler Builders upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? Show your analysis. Print Done Kyler Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Albany. Land and laborare cheap, and competition among developers is force. The homes are cookie cutter with any upgrades added by the buyer after the sale. Kyler Builders' cost per developed sublot are as follows: m (Click the icon to view the costs) Question Help Kyler Builders would like to earn a profit of 16% of the variable cost of each home sale. Similar homes offered by competing builders soll for $207,000 each Read the fequi Requirement 1. Which approach to pricing should Kyler Builders emphasize? Why? Kyler will need to emphasize a target-costing approach to pricing Because the tract homes are not unique and face Soff competition, Kyler will not have much control over pricing Requirement 2. Wil Kyler Builders be able to achieve its target profit levels? Show your computations Complete the following table to show whether Kyler Builders will be able to achieve their target profit levels. (Use parentheses or a minus sign to indicate a profit shortfat) Revenue at market price Less Desired profit Target cost per home Less Actual current variable cost Expected excess profit (profit shortfall)
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