$40 [The following information applies to the questions displayed below.] DIY Protect Inc. is a company...
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$40 [The following information applies to the questions displayed below.] DIY Protect Inc. is a company that assists customers in the installation of home security systems. See below for the characteristics of two of DIY Protect Inc.'s systems, the ICU 100 and the ICU 900: Design Specifications ICU 100 ICU 900 Cost Data Video cameras 1 4 $ 114/ea Video monitors 1 $ 26/ea Motion detectors 6 2 $ 18/ea Floodlights 8 3 $ 8/ea Alarms 1 $ 13/ea $0.1/ft. Wiring 7 1,010 ft. 13 hr. 610 ft. Installation 13 hr $ 15/hr The ICU 100 sells for $900 installed, and the ICU 900 sells for $1,610 installed. Required: 1. What are the current profit margin percentages on both systems? 2. DIY Protect Inc.'s management believes that it must drop the price on the ICU 100 to $840 and on the ICU 900 to $1,480 to remain competitive in the market. Recalculate profit margin percentages for both products at these price levels and then compute the target cost needed for each product to maintain the current profit margin percentages. (For all requirements, round your percentage answers to 2 decimal places and other answers to the nearest whole dollar amount.) ICU 900 ICU 100 1. Current profit margin 2. Profit margin Target cost Activate Windows Go to Settings to activate Wine % % 1 $40 [The following information applies to the questions displayed below.] DIY Protect Inc. is a company that assists customers in the installation of home security systems. See below for the characteristics of two of DIY Protect Inc.'s systems, the ICU 100 and the ICU 900: Design Specifications ICU 100 ICU 900 Cost Data Video cameras 1 4 $ 114/ea Video monitors 1 $ 26/ea Motion detectors 6 2 $ 18/ea Floodlights 8 3 $ 8/ea Alarms 1 $ 13/ea $0.1/ft. Wiring 7 1,010 ft. 13 hr. 610 ft. Installation 13 hr $ 15/hr The ICU 100 sells for $900 installed, and the ICU 900 sells for $1,610 installed. Required: 1. What are the current profit margin percentages on both systems? 2. DIY Protect Inc.'s management believes that it must drop the price on the ICU 100 to $840 and on the ICU 900 to $1,480 to remain competitive in the market. Recalculate profit margin percentages for both products at these price levels and then compute the target cost needed for each product to maintain the current profit margin percentages. (For all requirements, round your percentage answers to 2 decimal places and other answers to the nearest whole dollar amount.) ICU 900 ICU 100 1. Current profit margin 2. Profit margin Target cost Activate Windows Go to Settings to activate Wine % % 1
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1 ICU 100 ICU 900 Selling price 900 1610 Less Costs Video Cameras 1... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
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