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 2 3 ICU 100 1 ICU 900 4 Cost Data $ 112/ea 3 $ 24/ea 1 2 5 630 feet 11 hour 6 1,030 feet 11 hour $ 0.3/feet $ 12/hour 4 $ 16/ea $ 8/ea $ 13/ea The ICU 100 sells for $880 installed, and the ICU 900 sells for $1,590 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 $820 and on the ICU 900 to $1,460 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 percentage answers to 2 decimal places (i.e. .1234 = 12.34%) and other answers to the nearest whole dollar amount.)

Pkg Acc Infor Systems MS VISIO CD
10th Edition
ISBN:9781133935940
Author:Ulric J. Gelinas
Publisher:Ulric J. Gelinas
Chapter7: Controlling Information Systems: Introduction To Enterprise Risk Management and Internal Control
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
Video monitors
Motion detectors
Floodlights
Alarms
Wiring
Installation
$ 16/ea
ICU 100
1
ICU 900
4
Cost Data
$ 112/ea
2
3
$ 24/ea
3
1
4
2
5
6
630 feet
11 hour
1,030 feet
11 hour
$ 8/ea
$ 13/ea
$ 0.3/feet
$12/hour
The ICU 100 sells for $880 installed, and the ICU 900 sells for $1,590 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 $820 and on the ICU 900
to $1,460 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 percentage answers to 2 decimal places (i.e. .1234 = 12.34%) and other
answers to the nearest whole dollar amount.)
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 Video monitors Motion detectors Floodlights Alarms Wiring Installation $ 16/ea ICU 100 1 ICU 900 4 Cost Data $ 112/ea 2 3 $ 24/ea 3 1 4 2 5 6 630 feet 11 hour 1,030 feet 11 hour $ 8/ea $ 13/ea $ 0.3/feet $12/hour The ICU 100 sells for $880 installed, and the ICU 900 sells for $1,590 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 $820 and on the ICU 900 to $1,460 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 percentage answers to 2 decimal places (i.e. .1234 = 12.34%) and other answers to the nearest whole dollar amount.)
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