Builders builds1,500-square-foot starter tract homes in the fast-growing suburbs of TulsaTulsa. ...

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Accounting

Builders builds1,500-square-foot starter tract homes in the fast-growing suburbs of
TulsaTulsa.
Land and labor are inexpensive, and competition among developers is fierce. The homes are "cookie-cutter," with any upgrades added by the buyer after the sale.
SesnieSesnie
Builders' costs per developed sublot are as follows:
View the costs.
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SesnieSesnie
Builders would like to earn a profit of
1414%
of the variable cost of each home sale. Similar homes offered by competing builders sell for
$ 200 comma 000$200,000
each.
Read the requirements.
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Question content area bottom
Part 1
Requirement 1. Which approach to pricing should
SesnieSesnie
Builders emphasize? Why?
SesnieSesnie
will need to emphasize a
approach to pricing. Because the tract homes are
stiff competition,
SesnieSesnie
will
control over pricing.

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