Clear Blue Pools Builds Custom In-Ground Pools Ranging in Price

question 150

Essay

Clear Blue Pools builds custom in-ground pools ranging in price from $18,000 to $36,000.Dr.Jim Hardin, a local plastic surgeon has asked Clear Blue Pools to show him a portfolio of pools.Dr.Hardin has selected a model that calls for materials of $18,000, and labor and overhead of $13,000, but Dr.Hardin wants some handicap features not included in the model that would add another $4,000 to the cost but does not want to pay more than $32,000.Clear Blue Pools typically prices its pools based on the total cost of construction plus 15%.
Required:
a.What price would Clear Blue Pools normally quote for this pool?
b.What is the target cost Clear Blue Pools would need to meet to sell the pool for $32,000 at a 15% markup? (Round to the nearest dollar)
c.What could Clear Blue Pools do to meet the target cost in part b?

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Definitions:

Intuition

A non-analytical way of knowledge acquisition and decision-making, often based on experience and immediate judgment.

Thinking Styles

The various ways in which individuals process information, solve problems, and make decisions.

Information Processing

The acquisition, recording, organization, retrieval, display, and dissemination of information.

Satisfice

Satisfice is a decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution, particularly when faced with limited information or time.