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Required information (The following information applies to the questions displayed below) UR Safe Systens instals home security systems. Two of its systems, the ICU 100 and the ICU 900, have these characteristics: Specifications TCU 100 TCU 900 2 FHI 748 feet 1,140 feet $ 0.3/feet $12/hour 12 hour 30 hour The ICU 100 sells for $950 Installed, and the ICU 900 sells for $1,660 installed. Design Video careras Video monitors Motion detectors Floodlights Alares Wiring Installation Current profit margin 1. 2 Profit margin Target coat 3 ICU 100 3 ICU 900 4 Cost Data $119/ca Required What are the current gross prott margin percentages on both systems? 2. UR Safe's management believes that it mat drop the price on the ICU 100 to $800 and on the ICU 900 to $1,530 to remain competitive in the market. Recalculate gross profit margin percentages for both products at these price levels and then compute the target cost needed for each product to maintain the current gross profit margin porcontages. $35/ea For all requirements, round your percentage answers to 2 decimal places (le 1234-12.34%) and other answers to the nearest whole delle amount) $19/ea $5/ea $ 16/ea

Required information (The following information applies to the questions displayed below) UR Safe Systens instals home security systems. Two of its systems, the ICU 100 and the ICU 900, have these characteristics: Specifications TCU 100 TCU 900 2 FHI 748 feet 1,140 feet $ 0.3/feet $12/hour 12 hour 30 hour The ICU 100 sells for $950 Installed, and the ICU 900 sells for $1,660 installed. Design Video careras Video monitors Motion detectors Floodlights Alares Wiring Installation Current profit margin 1. 2 Profit margin Target coat 3 ICU 100 3 ICU 900 4 Cost Data $119/ca Required What are the current gross prott margin percentages on both systems? 2. UR Safe's management believes that it mat drop the price on the ICU 100 to $800 and on the ICU 900 to $1,530 to remain competitive in the market. Recalculate gross profit margin percentages for both products at these price levels and then compute the target cost needed for each product to maintain the current gross profit margin porcontages. $35/ea For all requirements, round your percentage answers to 2 decimal places (le 1234-12.34%) and other answers to the nearest whole delle amount) $19/ea $5/ea $ 16/ea

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information The following information applies to the questions displayed below) UR Safe Systems installs home security systems. Two of its systems, the ICU 100 and the ICU 900, have these characteristics: Design Specifications Video careras ICU 188 2 1 Video monitors Motion detectors Floodlights Alarms 748 feet Wiring Installation 12 hour The ICU 100 sells for $950 installed, and the ICU 900 sells for $1,660 installed. 1. Current profit margin 2. Profit margin Target coat ICU 100 1 3 5 % % ICU 980 3 3 4 5 3 ICU 900 Cost Data $ 119/ca $ 35/ea $19/ea 1,140 feet 30 hour Required: 1 What are the current gross profit margin percentages on both systems? 2. UR Safe's management believes that it must drop the price on the ICU 100 to $890 and on the ICU 900 to $1,530 to remain competitive in the market. Recalculate gross profit margin percentages for both products at these price levels and then compute the target cost needed for each product to maintain the current gross profit margin percentages. $ 5/ea $ 16/ea (For all requirements, round your percentage answers to 2 decimal places (le. 1234-12.34%) and other answers to the nearest whole dollar amount.) $0 0.3/feet $ 12/hour
Transcribed Image Text:Required information The following information applies to the questions displayed below) UR Safe Systems installs home security systems. Two of its systems, the ICU 100 and the ICU 900, have these characteristics: Design Specifications Video careras ICU 188 2 1 Video monitors Motion detectors Floodlights Alarms 748 feet Wiring Installation 12 hour The ICU 100 sells for $950 installed, and the ICU 900 sells for $1,660 installed. 1. Current profit margin 2. Profit margin Target coat ICU 100 1 3 5 % % ICU 980 3 3 4 5 3 ICU 900 Cost Data $ 119/ca $ 35/ea $19/ea 1,140 feet 30 hour Required: 1 What are the current gross profit margin percentages on both systems? 2. UR Safe's management believes that it must drop the price on the ICU 100 to $890 and on the ICU 900 to $1,530 to remain competitive in the market. Recalculate gross profit margin percentages for both products at these price levels and then compute the target cost needed for each product to maintain the current gross profit margin percentages. $ 5/ea $ 16/ea (For all requirements, round your percentage answers to 2 decimal places (le. 1234-12.34%) and other answers to the nearest whole dollar amount.) $0 0.3/feet $ 12/hour
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