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4 Required information [The fol/owing 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 ICU 100 ICU 900 Cost Data Video cameras 1 4 S 114/ea Video monitors 1 1 $ 26/ea Motion detectors 6 2 5 18/ea Floodlights 8 3 $ 8/ea Alarms 1 7 $ 13/ ea Wiring 610 ft. 1,010 ft. $0.1/ft. Installation 13 hr 13 hr $ lS/hr The ICU 100 sells for $900 installed, and the ICU 900 sells for $1,610 installed. Required: 1. What are the current prot margin percentages on both systems? 2. UR Safe'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.) Current prot margin 2. Prot margin Target cost Caldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The firm reports the following operating data for the yearjust completed: Quantity of Cost Cost per Unit. of Activity Cost Driver Driver Cost Driver Purchasing Number of purchase orders 1,060 $156 per order Warehousing Number of moves 8,600 36 per move Distributing Number of shipments 560 86 per shipment Caldwell buys 100,600 units at an average unit cost of $16 and sells them at an average unit price of $26. The firm also has fixed operating costs of $250,600 for the year. Caldwell's customers are demanding a 16% discount for the coming year. The company expects to sell the same amount ifthe demand for price reduction can be met. Caldwell's suppliers, however. are willing to give only a 10% discount. Required: Caldwell has estimated that it can reduce the number of purchase orders to 740 and can decrease the cost of each shipment by $9 with minor changes in its operations. Any further cost savings must come from reengineering the warehousing processes. What is the maximum cost (i.e., target cost) for warehousing ifthe firm desires to earn the same amount of prot next year? :|