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Required information

Problem $13-38($Algo$)$ Target Costing in a Service Firm $[$LO $13-1]$

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UR Safe Systems installs home security systems. Two of its systems, the ICU $100$ and the ICU $900,$ have these characteristics:

$\backslash$table$[[$Design Specifications,ICU $100,$ICU $900,$Cost Data$],[$Video cameras,$1,3,$$$118$ per each$],[$Video monitors,$2,5,$$$30$ per each$],[$Motion detectors,$1,7,$$$20$ per each$],[$Floodlights$,2,8,$$$6$ per each$],[$Alarms$,3,4,$$$15$ per each$],[$Wiring$,730$ feet,$1,130$ feet,$$0\mathrm{.}2$ per feet$],[$Installation$,17$ hour,$29$ hour,$$11$ per hour$]]$

The ICU $100$ sells for $$940$ installed, and the ICU $900$ sells for $$1,650$ installed.

Part $1($Algo$)$

Required:

What are the current gross profit margin percentages on both systems?

UR Safe's management believes that it must drop the price on the ICU $100$ to $$880$ and on the ICU $900$ to $$1,520$ 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.

Note: For all requirements, round your percentage answers to $2$ decimal places $($i$.$e$.1234=12\mathrm{.}34\%)$ and other answers to the nearest whole dollar amount.

$\backslash$table$[[,$ICU $100,$ICU $900],[1.$ Current profit margin,$37\mathrm{.}45,\%,21\mathrm{.}39,\%$