Stenback Builders would like to earn a profit of 14% of the variable cost of eac

Stenback Builders would like to earn a profit of 14% of the variable cost of each home sale. Similar homes offered by competing builders sell for $208000 each.Requirements1. Which approach to pricing should Stenback Builders emphasize? Why?2. Will Stenback Builders be able to achieve its target profit levels?3. Bathrooms and kitchens are typically the most important selling features of a home. Stenback Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $22000 per home but would enable Stenback Builders to increase the selling prices by $38500 per home. (Kitchen and bathroom upgrades typically add about 175% of their cost to the value of any home.) If Stenback Builders makes the upgrades what will the new cost-plus price per home be? Should the company differentiate its product in this manner?