Requirement 3. Bathrooms and kitchens are typically the most important selling features of a home....

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Accounting

Requirement 3. Bathrooms and kitchens are typically the most important selling features of a home.
DominicDominic
Builders could differentiate the homes by upgrading bathrooms and kitchens. The upgrades would cost
$ 20 comma 000$20,000
per home but would enable the company to increase the selling prices by
$ 35 comma 000$35,000
per home(in general, kitchen and bathroom upgrades typically add at least150% of their cost to the value of any home). If
DominicDominic
Builders upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? Show your analysis.
Compute the new cost-plus price per home.
Plus:
Total variable costs
Plus:
Cost-plus price

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