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 cameras Video monitors Motion detectors 1. 2. ICU 100 2 2 3 Floodlights 1 Alarms 5 Wiring Installation 650 feet 11 hour 1,050 feet 21 hour The ICU 100 sells for $860 Installed, and the ICU 900 sells for $1,570 Installed. Current profit margin Profit margin Target cost ICU 100 % % 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 $800 and on the ICU 900 to $1,440 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. ICU 900 4 6 3 (For all requirements, round your percentage answers to 2 decimal places (l.e. .1234 - 12.34%) and other answers to the nearest whole dollar amount.) ICU 900 % Le Le 2 Cost Data $ 109/ea $ 22/ea $ 14/ea $ 8/ea 5 $ 13/ea $ 0.3/feet $ 12/hour

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 cameras Video monitors Motion detectors 1. 2. ICU 100 2 2 3 Floodlights 1 Alarms 5 Wiring Installation 650 feet 11 hour 1,050 feet 21 hour The ICU 100 sells for $860 Installed, and the ICU 900 sells for $1,570 Installed. Current profit margin Profit margin Target cost ICU 100 % % 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 $800 and on the ICU 900 to $1,440 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. ICU 900 4 6 3 (For all requirements, round your percentage answers to 2 decimal places (l.e. .1234 - 12.34%) and other answers to the nearest whole dollar amount.) ICU 900 % Le Le 2 Cost Data $ 109/ea $ 22/ea $ 14/ea $ 8/ea 5 $ 13/ea $ 0.3/feet $ 12/hour

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Oriole Professionals, a management consulting firm, specializes in strategic planning for financial institutions. Mark Martin and George Garcia, partners in the firm, are assembling a new strategic planning model for clients to use. The model is designed to be used on most personal computers and replaces a rather lengthy manual model currently marketed by the firm. To market the new model, Mark and George will need to provide clients with an estimate of the number of labour hours and the computer time needed to operate the model. The model is currently being test-marketed at five small financial institutions. These financial institutions are listed below, along with the number of combined computer/labour hours used by each institution to run the model once: Financial Institutions Canadian National First Funds Financial Federal Pacific Coast Lakeview Savings Total Average Computer/Labour Hours Required 29.00 52.00 46.00 35.00 35.00 197.00 39.40 Any company that purchases the new model…
Keep-U-Safe Systems (KSS) sells security solutions to large corporations. KSS offers electronic security systems for buildings (complete with cameras and keypad entry), perimeter security fencing (both physical and electronic) and offers an optional 24-hour security monitoring service. The solutions can be purchased individually, or as a package. The security systems and security fencing are sold as completed items (installation included). The security monitoring consists of two years of monitoring by KSS's call centre, who alert businesses in the event that an alarm is triggered, as well as dispatch emergency personnel if nobody can be reached. Each sales order is customized to the needs of the customer. On September 30, 2021, KSS sold a security solution that consisted of a building security system, fencing for a warehouse location, and the 24-hour security monitoring service. The solution was sold to Charleston Manufacturers for a price of $38,000, with payment due on…
ework i [The following information applies to the questions displayed below.] Franklin Training Services (FTS) provides instruction on the use of computer software for the employees of its corporate clients. It offers courses in the clients' offices on the clients' equipment. The only major expense FTS incurs is instructor salaries; it pays instructors $5,300 per course taught. FTS recently agreed to offer a course of instruction to the employees of Novak Incorporated at a price of $470 per student. Novak estimated that 20 students would attend the course. Base your answers on the preceding information. Problem 11-25A (Algo) Part 3 FTS sells a custom wood plaque to students who complete the training course. Due to the custom nature of these plaques, FTS has to produce them in advance based on the estimated number of students to be enrolled in the course. Any plaques made for students who do not end up completing the course will be discarded. Prior to the first class, FTS pre-ordered 20…
V Corporation produces Blu-ray players that have three major components: optical system, disc drive mechanism, and internal electronics. All the components should work for the player to function. The optical system has a reliability of 95%, the disc drive mechanism has a reliability of 90%, and the internal electronics has a reliability of 70%. The internal electronics has a backup component with the same reliability of 70%. What is the reliability of V Corporation's Blu-ray players? 0.778 0.855 0.599 0.550
Required information [The following information applies to the questions displayed below.] EagleEye Company, a manufacturer of digital cameras, is considering entry into the digital binocular market. EagleEye Company currently does not produce binoculars of any style, so this venture would require a careful analysis of relevant manufacturing costs to correctly assess its ability to compete. The market price for this binocular style is well established at $125 per unit. EagleEye has enough square footage in its plant to accommodate the new production line, although several pieces of new equipment would be required; their estimated cost is $4,850,000. EagleEye requires a minimum ROI of 14% on any product line investment and estimates that if it enters this market with its digital binocular product at the prevailing market price, it is confident of its ability to sell 21,000 units each year. b. Calculate the target cost per unit for entry into the digital binocular market. (Round your…
You are in the last stages of evaluating laptop vendors for a major hardware upgrade and standardization project for your firm. You will be purchasing a total of 1,200 new laptops to deploy to the worldwide salesforce. One vendor’s product carries a Bronze EPEAT rating; the other vendor’s product would cost an additional $96,000 but carries a Gold EPEAT rating. The two products are very evenly matched on other key factors, such as performance, features, reliability, and support costs. How would you decide between the two vendors’ products?
Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer's home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,750, sells the remote separately for $100, and offers the entire package for $1,900. VP does not sell the installation service separately. VP is aware that other similar vendors charge $150 for the installation service. VP also estimates that it incurs approximately $100 of compensation and other costs for VP staff to provide the installation service. VP typically charges 40% above cost on similar sales. Required: 1. to 3. Estimate the stand-alone selling price of the installation service using each of the following approaches. Adjusted market assessment Expected cost plus…
Brandon Technology makes two models of a specialized sensor for the aerospace industry. The difference in the two models relates to the required accuracy of the sensor. The Standard model is used for most normal operations while the High-Performance model is used for high-altitude and specialized missions. Before shipment, the two models are passed through a machine that, among other things, certifies the accuracy of the sensor. The company only has one testing machine. The price and costs of the two sensor models are shown here: Standard High-Performance Price per sensor $ 52 $ 96 Variable cost per sensor $ 34 $ 41 Testing hours per sensor 0.04 0.11 The testing machine used for both models has a capacity of 8,250 hours annually. Fixed manufacturing costs are $2,400,000 annually. Required: a. Suppose that the maximum annual unit sales that is possible for Brandon Technology is 250,000 units of the Standard model and 80,000 of the High-Performance model. How many…
The Excel worksheet form that appears below is to be used to recreate the Review Problem pertaining to the Magnetic Imaging Division of Medical Diagnostics, Inc. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this worksheet form. You should proceed to the requirements below only after completing your worksheet. Required: 1. Check your worksheet by changing the average operating assets in cell B6 to $8,000,000. The ROI should now be 38% arid the residual income should now be $1,000,000. If you do not get these answers, find the errors in your worksheet and correct them. Explain why the ROI and the residual income both increase when the average operating assets decrease. 2. Revise the data in your worksheet as follows: a. What is the ROI? b. What is the residual income? c. Explain the relationship between the ROI and the residual income?
Hmm.147.
Use ASC to answer the following
The Dodson Company manufactures and distríbutes three types of electronic products, Zymol, Zybat and Zycot. The following details the unit sales, selling prices and manufacturing costs of the three electronic devices: Zymol $100 Zybat $120 Zycot $180 Sales Price Manufacturing Cost $60 $80 $110 Number ofunits sold 15,000 13,000 12,000 Selling, general and administrative(SG&A) expenses are $1,170,000. SG&Aexpenses are currently being allocated based upon sales revenue for the three products. The Dodson Companyis considering allocating SG&A expenses underan activity based costing methodology as follows: Upon further investigation of the SG&A expenses, (50 percent) are shown to be for marketing and advertising. Each product has its own advertising and marketing budget, administered by one of the three marketing managers. Zycot, the premier product, is advertisedheavily. Sixty percent of the marketing and advertising budget goes toward Zycot, twenty percent to Zymol and twenty percent to…