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! Required information Problem 1 3 - 3 8 ( Algo ) Target Costing in a Service Firm [ LO 1 3 - 1 ]

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Required information
Problem 13-38(Algo) Target Costing in a Service Firm [LO 13-1]
[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:
\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,$0.2 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=12.34%) and other answers to the nearest whole dollar amount.
\table[[,ICU 100,ICU 900],[1. Current profit margin,37.45,%,21.39,%
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