!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 thesecharacteristics:1.2.Design SpecificationsVideo camerasVideo monitorsMotion detectorsFloodlightsAlarmsWiringInstallationICU 100224Current profit marginProfit marginTarget cost221,090 feet25 hourThe ICU 100 sells for $820 installed, and the ICU 900 sells for $1,530 installed.ICU 100690 feet15 hourRequired: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 $760 and on the ICU 900 to $1,400 to remaincompetitive in the market. Recalculate gross profit margin percentages for both products at these price levels and then compute thetarget cost needed for each product to maintain the current gross profit margin percentages.%%(For all requirements, round your percentage answers to 2 decimal places (i.e. .1234 = 12.34%) and other answers to the nearestwhole dollar amount.)ICU 90022761Cost Data$ 110/ea$ 65/ea$ 10/ea$5/ea$11/eal$ 0.2/feet$10/hourICU 900%%

Requirement:-1 Calculation of current profit margin as follows under:- Formula =Profit/Selling price…

Required: What are the current gross profit margin percentages on both systems? UR Safe's management believes that it must drop the price on the ICU 100 to $760 and on the ICU 900 to $1,400 to remain ompetitive in the market. Recalculate gross profit margin percentages for both products at these price levels and then compute the arget cost needed for each product to maintain the current gross profit margin percentages. For all requirements, round your percentage answers to 2 decimal places (i.e. .1234 = 12.34%) and other answers to the nearest whole dollar amount.) 1. 2. Current profit margin Profit margin Target cost ICU 100 % % ICU 900 % %

Required: What are the current gross profit margin percentages on both systems? UR Safe's management believes that it must drop the price on the ICU 100 to $760 and on the ICU 900 to $1,400 to remain ompetitive in the market. Recalculate gross profit margin percentages for both products at these price levels and then compute the arget cost needed for each product to maintain the current gross profit margin percentages. For all requirements, round your percentage answers to 2 decimal places (i.e. .1234 = 12.34%) and other answers to the nearest whole dollar amount.) 1. 2. Current profit margin Profit margin Target cost ICU 100 % % ICU 900 % %

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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