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 Floodlights Alarms 3 2 Wiring Installation 710 feet 11 hour 1,150 feet 21 hour The ICU 100 sells for $980 installed, and the ICU 900 sells for $1,690 installed. ICU 100 2 2 1 ICU 900 3 2 2 Cost Data $ 122/ea $65/ea $ 16/ea $2/ea $ 19/ea $ 0.3/feet $ 15/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 $920 and on the ICU 900 to $1,560 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.

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 Floodlights Alarms 3 2 Wiring Installation 710 feet 11 hour 1,150 feet 21 hour The ICU 100 sells for $980 installed, and the ICU 900 sells for $1,690 installed. ICU 100 2 2 1 ICU 900 3 2 2 Cost Data $ 122/ea $65/ea $ 16/ea $2/ea $ 19/ea $ 0.3/feet $ 15/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 $920 and on the ICU 900 to $1,560 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.

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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