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 Cost Data Video cameras $ 122/ea Video monitors $ 65/ea Motion detectors 2 $ 16/ea Floodlights 3 $ 2/ea Alarms 2 $19/ea Wiring 1,150 ft. $8.3/ft. Installation 21 hr $ 15/hr ICU 9ee 3 2 ICU lee 2 2 1 3 3 710 ft. 11 hr The ICU 100 sells for $980 installed, and the ICU 900 sells for $1,690 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 $920 and on the ICU 900 to $1.560 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 100 ICU 900 96 1. 2. Current profit margin Profit margin %6 96 % Target cost