Required information Problem 13-38 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: Design Specifications Video Cameras Video monitors Motion detectors Floodlights Alarms Wiring Installation ICU 100 2 1 1 3 5 740 ft. 12 hr ICU 900 3 3 4 5 3 1,140 ft. 30 hr Cost Data $ 119/ea $ 35/ea $ 19/ea $ 5/ea $ 16/ea $ 0.3/ft. $ 12/hr The ICU 100 sells for $950 installed, and the ICU 900 sells for $1,660 installed Part 1 Required: 1. What are the current profit margin percentages on both systems? 2. UR Safe's management believes that it must drop the price on the ICU 100 to $890 and on the ICU 900 to $1,530 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.) 1 2 Current profit margin Profit margin Target cost ICU 100 20.74% 14.18% 1,210 ICU 900 20.90% % $