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Root Builders buids 1.500-foot startar tract homes in the growing suburbs of Ser Land and labor Root diere would like to come o 15% of the variable cost of each home sale. Simiw homes hered ty are cheap and competition among developers force. The homes are cookie-cutter with any added by competing bulder sell for $200,000 each the buyer after the sale. Root Builders cost per developed blotras Read the (Click the icon to view the cost Data Table Requirement 1. Which approach to pricing should Rootilulders hare? Why? Root wilt need to emphasizes are coming approach to prong. Because the tract homes are not unique and face competition, Root will not have much Requirement 2. Wil Root Bulders be able achieve its target protavera? Show your competi Complete the following table to show whether Root Builders will be able to achieve their target profievels. (parenthes or anime vign tondile a profitum Land Construction Landscaping Variable marketing costs 50000 $ 2009 5 7.000 5 5000 Less Targe cost per home Less Expected as profit prostortal) Requirements 1. Which approach to pricing should Root Builders me? Why? 2. Wil Root lluiderstehle to achieve its target profile Show your computations 3. Bathrooms and chans are typically the most important ingatures of a home Roos Bulders could do the homes by vgrading bathroom and kitchens. The upgrades would cost $18.000 per home but would enable the company to increase the selling prices by $31.500 per home in tra, kitchen and bathroom upgrades typically add atleast 10% of cost to the value of any home Root Builders upgrades wat wil the new co-plus price per home be? Should recomany differentiatets product in the manner Show your analysis Print Done Main

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