Alert Alarm Systems installs home security systems. Two of its systems, the ICU 100 and the ICU
Question:
Alert Alarm Systems installs home security systems. Two of its systems, the ICU 100 and the ICU 900, have these characteristics:
The ICU 100 sells for $810 installed, and the ICU 900 sells for $1,520 installed.
Required
1. What are the current profit margins on both systems?
2. Alert’s management believes that it must drop the price on the ICU 100 to $750 and on the ICU 900 to $1,390 to remain competitive in the market. Recalculate profit margins for both products at these price levels.
3. Describe two ways that Alert could cut its costs to get the profit margins back to their originallevels.
Transcribed Image Text:
Design Specifications ICU 100 ICU 900 Cost Data $150/ea. Video cameras $ 75/ea. Video monitors 1 1 $ 15/ea. Motion detectors 5 8 $ 8/ea. Floodlights 3 Alarms $ 15/ea. | Wiring 700 ft. 1,100 ft. s 0.10/ft. 26 hrs. $ 20/hr. Installation 16 hrs. 3. 2.
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1 Cost and profitmargin information on products ICU 100 ICU 900 Video cameras 150 450 Video monitors ...View the full answer
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Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
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Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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