Business, 07.11.2019 23:31 isac58

Prlclng declslons given two scenariosjohnson builders builds 1,500-square-foot startertract homes in the fast-growing suburbs of atlanta. land and labor arecheap, and competition among developers is fierce. the homes are "cookie-cutter," with any upgrades added by the buyerafter the sale- johnson builders’ costs per developed sublot are as follows: melandscaping 5 6,000ariable marketing costs 5 1,000johnson builders would like to earn a profit of 16% of the variable cost of each home sale. similar homes offered bycompeting builders sell for $201,000 each. requlrements1. which approach to pricing should johnson builders emphasize? why? 2 will johnson 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. johnson builders could differentiatethe homes by upgrading bathrooms and kitchens- the upgrades would cost $24,000 per home but would enable johnsonbuilders to increase the selling prices by 842,000 per home (in general, kitchen and bathroom upgrades typically add atleast 150% of their cost to the value of any home.) if johnson builders upgrades, what will the new cost-plus price perhome be? should the company differentiate its product in this manner? show your analysis.

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