what could gorrells and sunn do to meet the target cost in part 2 613969

Gorrells and Sunn builds high-quality homes ranging in price from $200,000 to $1 million. John Ellis, a local physician, has asked Gorrells and Sunn to show him some house plans. Dr. Ellis has selected a plan that calls for $300,000 in building materials, $180,000 in labor, and $40,000 in add-ons, but he doesn”t want to pay more than $575,000 for his home. Gorrells and Sunn typically prices its homes based on the total cost of construction plus 15%.

Required

1. What price would Gorrells and Sunn normally quote for this house plan?
2. What is the target cost Gorrells and Sunn would need to meet to sell the house for $575,000 at a 15% markup?
3. What could Gorrells and Sunn do to meet the target cost in part (2)?