User Account

All Pages

What are current profit margin percentages on both system

Assignment Help Managerial Accounting
Reference no: EM132546382

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                            2                   5                           $115/ea

Video monitors                            2                        1                      $27/ea

Motion detectors                        5                          3                    $19/ea

Floodlights                                4                           2                     $9/ea

Alarms                                      2                         1                      $14/ea

Wiring                                      600ft.               1,000ft.                    $0.2/ft.

Installation                                  14hr                 14hr                       $14/hr

The ICU 100 sells for $910 installed, and the ICU 900 sells for $1,620 installed.

Required:

Question 1. What are the current profit margin percentages on both systems?

Question 2. UR Safe's management believes that it must drop the price on the ICU 100 to $850 and on the ICU 900 to $1,490 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.

Reference no: EM132546382

Questions Cloud

Strategic leaders develop firm strategic direction : Strategic leaders develop the firm’s strategic direction. The strategic direction specifies the image and character of the firm.
What type of generic strategies dutch lady malaysia apply : What type of generic strategies does Dutch Lady Malaysia apply? whether it is Cost leadership or Differentiation or both. why Dutch Lady choose?
How to compute the costs per equivalent unit for may : Determine the cost of ending work in process inventory and of the units transferred to the Coating Department. (Round intermediate calculation)
Determining the firm strategic direction : Determining the firm's strategic direction; effectively managing the resource portfolio; sustaining an effective organizational culture;
What are current profit margin percentages on both system : Find and calculate profit margin percentages for both products at these price levels and then compute the target cost needed for each product to maintain
OpSpec into corporate policies and procedures : Select one OpsSpec from FSIMS. and describe how an airline might translate that particular OpSpec into corporate policies and procedures
Find what is margin of safety in dollars : If Bubba's sells 28,000 hats, what is its before-tax income or loss? Support your answer by preparing a contribution income statement.
Discuss the various parts of journal article : Discuss the various parts of a journal article. Which parts are most helpful in determining if the paper is useful for research?
Reconstruct a statement of profit or loss : Current assets as a percentage of Cost of Sales 22%. From the information given reconstruct a Statement of Profit or Loss and a Statement of Financial Position

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Significance of recognizing the time value of money

Discuss the significance of recognizing the time value of money in the long-term impact of the capital budgeting decision

  How materials handling costs will be allocated to products

How Materials handling costs will be allocated to products at the rate of? Chinchilla, Inc. uses activity-based costing. The company produces X and Y.

  Prepare a monthly flexible budget

Prepare a monthly flexible budget for each $11,300 increment of sales within the relevant range for the year ending December 31, 2014

  Find number of electric stapler sales budget for march

December, and management forecasts 4.1% growth in sales each month, the number of units of electric stapler sales budgeted for March should be

  What the objective of the operating budget is

The first step in producing the operating the budget is to complete the? The objective of the financial budget and operating budget is to produce

  Determine the overhead cost per unit for each product

Daba Company manufactures two products, Using the activity-based costing approach, determine the overhead cost per unit for each product.

  Compare the effects of dropping the ski line

Complete the to compare the effects of dropping the ski line of products. Enter all amounts as positive numbers except for a net loss. If an amount is zero, enter "0".

  Stages of capital decision making process

Compare and contrast the kinds of decisions that are made in the Cancer Center capital investment decision analysis for the for-profit and non-profit healthcare facilities using the four stages of capital decision making process.

  Which an organisation that is using the product

Which An organisation that is using the product differentiation approach would?offer products at a lower cost than competitors/focus on tight cost control

  Develop an objective function with constraints

Develop an objective function with constraints in capital and labor cost. How many hours can you work before seeing Diminishing Returns? Please explain how you get the answer.

  Find what amount of underapplied or overapplied overhead

Whitley Construction Company, What is the amount of underapplied or overapplied overhead? Calculate the total cost of each of the three jobs.

  Create a flexible budget comparing the actual results

Prepare a budget for 2016 assuming sales and variable costs increase by 30% and fixed costs increase by $200,000,Make a flexible budget comparing actual results

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd