Answer:
New cost plus price per home: |
|
Particulars |
Amount |
Current Variable Cost per home |
$ 179,000 |
Plus Variable cost of Kitchen and Bathroom upgrade per home |
$ 30,000 |
Total Variable cost per home |
$ 209,000 |
Plus Desired profit per home ($209000*16%) |
$ 33,440 |
Cost Plus price per home |
$ 242,440 |
Yes, the company should differentiate its product in this manner as on upgradation company can earn more than desired profit.
Data Table -X Land $ 51,000 Construction 121,000 5,000 Landscaping Variable selling costs 2,000 Print Done...
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