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 1. 2. Video monitors Motion detectors Floodlights Alarms Wiring Installation 1 2 4 5 760 feet 20 hour 1,140 feet 20 hour The ICU 100 sells for $970 installed, and the ICU 900 sells for $1,680 installed. ICU 100 2 Current profit margin Profit margin Target cost 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 $910 and on the ICU 900 to $1,550 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 100 (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.) % % ICU 900 4 6 1 2 3 Cost Data $ 121/ea $ 55/ea $ 17/ea $3/ea $ 18/ea ICU 900 % % $ 0.2/feet $ 14/hour

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 1. 2. Video monitors Motion detectors Floodlights Alarms Wiring Installation 1 2 4 5 760 feet 20 hour 1,140 feet 20 hour The ICU 100 sells for $970 installed, and the ICU 900 sells for $1,680 installed. ICU 100 2 Current profit margin Profit margin Target cost 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 $910 and on the ICU 900 to $1,550 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 100 (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.) % % ICU 900 4 6 1 2 3 Cost Data $ 121/ea $ 55/ea $ 17/ea $3/ea $ 18/ea ICU 900 % % $ 0.2/feet $ 14/hour

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter12: Integer Linear Optimization_models

Section: Chapter Questions

Problem 9P: Galaxy Cloud Services operates several data centers across the United States containing servers that...

See similar textbooks

Similar questions

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 Wiring Installation ICU 100 ICU 900 Cost Data 3 $ 116/ea 3 3 $ 28/ea 5 5 $ 20/ea 1 2 710 feet 15 hour 6 2 1,110 feet 27 hour $ 8/ea $ 15/ea $ 0.1/feet. $ 13/hour The ICU 100 sells for $920 installed, and the ICU 900 sells for $1,630 installed. 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 $860 and on the ICU 900 to $1,500 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. (For all requirements,…
! 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: 1. 2. Design Specifications Video cameras Video monitors Motion detectors Floodlights Alarms Wiring Installation ICU 100 2 2 4 Current profit margin Profit margin Target cost 2 2 1,090 feet 25 hour The ICU 100 sells for $820 installed, and the ICU 900 sells for $1,530 installed. ICU 100 690 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 $760 and on the ICU 900 to $1,400 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. % % (For all requirements, round your…
! 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 Wiring Installation ICU 100 2 2 1. Current profit margin 2. Profit margin Target cost WEIN ICU 100 1 % % 3 3 710 feet 11 hour 1,150 feet 21 hour The ICU 100 sells for $980 installed, and the ICU 900 sells for $1,690 installed. 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. (For all requirements, round your…
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 Wiring Installation 1,050 feet 21 hour The ICU 100 sells for $860 Installed, and the ICU 900 sells for $1,570 Installed. 1. Current profit margin 2. ICU 100 2 2 3 1 5 650 feet 11 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 $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. Profit margin Target cost (For all requirements, round your percentage answers to…
Customer Value, Strategic PositioningAdriana Alvarado has decided to purchase a personal computer. She hasnarrowed the choices to two: Drantex (ad Confiar. Both brands have thesame processing speed, 6.4 gigabytes of hard-disk capacity, two USBports, and a DVDRW drive, and each comes with the same basic softwaresupport package. Both come from mail-order companies with goodreputations. The selling price for each is identical. After some review,Adriana discovers that the cost of operating and maintaining Drantexover a 3-year period is estimated to be $300. For Confiar, the operatingand maintenance cost is $600. The sales agent for Drantex emphasizedthe lower operating and maintenance costs. The agent for Confiar,however, emphasized the service reputation of the product and thefaster delivery time (Confiar can be purchased and delivered 1 weeksooner than Drantex). Based on all the information, Adriana has decidedto bur Confiar. Required:1. What is the total product purchased by Adriana?2.…
Required information [The following information applies to the questions displayed below.] Marin Company produces two software products (Cloud-X and Cloud-Y) in two separate departments (A and B). These products are highly regarded network maintenance programs. Cloud-X is used for small networks and Cloud-Y is used for large networks. Marin is known for the quality of its products and its ability to meet dates promised for software upgrades. Department A produces Cloud-X, and department B produces Cloud-Y. The production departments are supported by two support departments, systems design and programming services. The sources and uses of the support department time are summarized as follows: From Design Programming Department A Department B 5,000 400 Design Programming The costs in the two service departments are as follows: Labor and materials (all variable) Depreciation and other fixed costs Total To a. Direct Method b. Step Method (Design Department goes first) c. The Reciprocal…
Required information [The following information applies to the questions displayed below.] Marin Company produces two software products (Cloud-X and Cloud-Y) in two separate departments (A and B). These products are highly regarded network maintenance programs. Cloud-X is used for small networks and Cloud-Y is used for large networks. Marin is known for the quality of its products and its ability to meet dates promised for software upgrades. Department A produces Cloud-X, and department B produces Cloud-Y. The production departments are supported by two support departments, systems design and programming services. The sources and uses of the support department time are summarized as follows: From Design 400 Design Programming The costs in the two service departments are as follows: Labor and materials (all variable) Depreciation and other fixed costs Total To Programming Department A 5,000 a. Direct Method b. Step Method (Design Department goes first) c. The Reciprocal Method (using…
Required information [The following information applies to the questions displayed below.] Marin Company produces two software products (Cloud-X and Cloud-Y) in two separate departments (A and B). These products are highly regarded network maintenance programs. Cloud-X is used for small networks and Cloud-Y is used for large networks. Marin is known for the quality of its products and its ability to meet dates promised for software upgrades. Department A produces Cloud-X, and department B produces Cloud-Y. The production departments are supported by two support departments, systems design and programming services. The sources and uses of the support department time are summarized as follows: From Design 400 Programming 5,000 Labor and materials (all variable) Depreciation and other fixed costs Total To Design Programming The costs in the two service departments are as follows: Department A 1,000 600 Design $ 65,000 49,000 $ 114,000 Department B 9,000 1,000 Programming $ 45,000 4,000 $…
Galaxy Cloud Services operates several data centers across the United States containing servers that store and process the data on the Internet. Suppose that Galaxy Cloud Services currently has five outdated data centers: one each in Michigan, Ohio, and California and two in New York. Management is considering increasing the capacity of these data centers to keep up with increasing demand. Each data center contains servers that are dedicated to Secure data and to Super Secure data. The cost to update each data center and the resulting increase in server capacity for each type of server are as follows: The projected needs are for a total increase in capacity of 90 Secure servers and 90 Super Secure servers. Management wants to determine which data centers to update to meet projected needs and, at the same time, minimize the total cost of the added capacity. Formulate a binary integer programming model that could be used to determine the optimal solution to the capacity increase question facing management. Solve the model formulated in part (a) to provide a recommendation for management.
Required information [The following information applies to the questions displayed below.] Johnson and Gomez, Inc., is a small firm involved in the production and sale of electronic business products. The company is well known for its attention to quality and innovation. During the past 15 months, a new product has been under development that allows users improved access to e-mail and video images. Johnson and Gomez code named the product the Wireless Wizard and has been quietly designing two models: Basic and Enhanced. Development costs have amounted to $201,000 and $282,000, respectively. The total market demand for each model is expected to be 53,000 units, and management anticipates being able to obtain the following market shares: Basic, 20 percent; Enhanced, 15 percent. Forecasted data follow. Projected selling price Per-unit production costs: Direct material Direct labor Variable overhead Marketing and advertising (fixed but avoidable) 208,000 Sales commissions* 15% Basic $…
! Required information [The following information applies to the questions displayed below.] Marin Company produces two software products (Cloud-X and Cloud-Y) in two separate departments (A and B). These products are highly regarded network maintenance programs. Cloud-X is used for small networks and Cloud-Y is used for large networks. Marin is known for the quality of its products and its ability to meet dates promised for software upgrades. Department A produces Cloud-X, and department B produces Cloud-Y. The production departments are supported by two support departments, systems design and programming services. The sources and uses of the support department time are summarized as follows: From Design Programming 5,000 400 Design Programming The costs in the two service departments are as follows: Labor and materials (all variable) Depreciation and other fixed costs Total To Department A Department B 1,000 600 a. Direct Method b. Step Method (Design Department goes first) c. The…
! Required information [The following information applies to the questions displayed below.] Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2022 and 2023 (in thousands of dollars): Sales Materials inspection In-process (production) inspection Finished product inspection Preventive equipment maintenance Scrap (net) Warranty repairs Product design engineering Vendor certification Direct costs of returned goods Training of factory workers Product testing-equipment maintenance Product testing labor Field repairs Rework before shipment Product-liability settlement Emergency repair and maintenance 2022 $ 15,800 280 158 230 18 480 680 148 22 255 38 58 190 68 220 340 180 2023 $ 19,800 58 123 68 58 280 430 250 58 78 138 58 88 38 198 58 73 5. Are financial or nonfinancial…