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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: 1. Design Specifications Video cameras Video monitors Motion detectors Floodlights Alarms Wiring Installation 2 ICU 100 1 1 3 5 Current profit margin Profit margin Target cost $ ICU 900 ICU 100 30.53 X % 265.00 % 935 x Required: . 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 $790 and on the ICU 900 to $1,430 to remain competitive 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. 5 660 feet 12 hour 1,060 feet 22 hour The ICU 100 sells for $850 installed, and the ICU 900 sells for $1,560 installed. 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.) 4 Answer is complete but not entirely correct. $ 3 4 ICU 900 38.10 % 575.00 % 605 X Cost Data $ 107/ea $ 21/ea $ 13/ea $7/ea $ 12/ea $ 0.2/feet $ 11/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: 1. Design Specifications Video cameras Video monitors Motion detectors Floodlights Alarms Wiring Installation 2 ICU 100 1 1 3 5 Current profit margin Profit margin Target cost $ ICU 900 ICU 100 30.53 X % 265.00 % 935 x Required: . 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 $790 and on the ICU 900 to $1,430 to remain competitive 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. 5 660 feet 12 hour 1,060 feet 22 hour The ICU 100 sells for $850 installed, and the ICU 900 sells for $1,560 installed. 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.) 4 Answer is complete but not entirely correct. $ 3 4 ICU 900 38.10 % 575.00 % 605 X Cost Data $ 107/ea $ 21/ea $ 13/ea $7/ea $ 12/ea $ 0.2/feet $ 11/hour

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
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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 cameras 1. 2. Video monitors Motion detectors Floodlights Alarms Wiring Installation ICU 100 1 1 3 5 Current profit margin Profit margin Target cost $ ICU 100 30.53 X % 265.00 % 935 x ICU 900 660 feet 12 hour 1,060 feet 22 hour The ICU 100 sells for $850 installed, and the ICU 900 sells for $1,560 installed. Required: . 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 $790 and on the ICU 900 to $1,430 to remain competitive 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.) 5 Answer is complete but not entirely correct. $ 4 3 4 ICU 900 38.10 % % 575.00 605 X Cost Data $ 107/ea $ 21/ea $13/ea $7/ea $ 12/ea $ 0.2/feet $ 11/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 cameras 1. 2. Video monitors Motion detectors Floodlights Alarms Wiring Installation ICU 100 1 1 3 5 Current profit margin Profit margin Target cost $ ICU 100 30.53 X % 265.00 % 935 x ICU 900 660 feet 12 hour 1,060 feet 22 hour The ICU 100 sells for $850 installed, and the ICU 900 sells for $1,560 installed. Required: . 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 $790 and on the ICU 900 to $1,430 to remain competitive 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.) 5 Answer is complete but not entirely correct. $ 4 3 4 ICU 900 38.10 % % 575.00 605 X Cost Data $ 107/ea $ 21/ea $13/ea $7/ea $ 12/ea $ 0.2/feet $ 11/hour
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