Benson Company is considering the addition of a new product to its cosmetics ne. The company has three stincty different options: a skin cream, a bath olor a hair coloring gel Relevant information and budgeted annual Income statements for each of the products to ow Relevant Information Skin Cream bath 01 Color Gel Badgeted sales 106,000 186,000 56,000 in unito (a) Expected sales 10 $ $ 12 price (b) Variable costs $ 2 $ 1 $ 6 Por unit (e) Inne statements Sales revenue (a 1.050.000 $1,116,000 $ 792,000 Variable costs (212,000) (186,000) 396,000) Contribution margin Tixed coats Net Income 848,000 528,000) 320,000 930,000 (550,000) 380,000 396,000 (102,000) $ 294,000 $ $ Required: a. Determine the margin of safety as a percentage for each product. b. Prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume c. For each product, determine the percentage change in net Income that results from the 20 percent increase in sales, d. Assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics Ine? e. Assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics ne? Complete this question by entering your answers in the tabs below. Reg A ReqB ReqC Reg to Determine the margin of safety as a percentage for each product. (Round your answers to whole percentage values.) Skin Bath On Color Gel Cream Margin of safety ReqA ReqB> Benson Company is considering the addition of a new product to its cosmetics ine. The company has three distinctly different options: a skin cream, a bath olor a hair coloring gel. Relevant information and budgeted annual income statements for each of the products follow Relevant information Skin Cream bath 01 Color Gel 106,000 186,000 56,000 5 10 $ 65 1 2 Budgeted sales in unito (a) Expected sales Price (b) Variable costs per unit (e) Incone statements Sales revenue ( 2 S 1 $ 6 1.050.000 $1.116.000 $ 792,000 Variable costs (212,000) 186,000) 396,000) Contribution margin Fixed coats Net Income 848,000 (528, 000) 320,000 930,000 (550,000) 380,000 396,000 102,000) $ 294,000 $ $ Required: a. Determine the margin of safety as a percentage for each product. b. Prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume c. For each product, determine the percentage change in net income that results from the 20 percent increase in sales. d. Assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? e. Assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line? Complete this question by entering your answers in the tabs below. Reg A ReqB ReqC Reg D to Prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. BENSON COMPANY Income Statements Skin Bath On Color Gel Cream Sales revenue Variable costs Contribution margin Foxed cost Net income Benson Company is considering the addition of a new product to its cosmetics ne. The company has three stincty different options: a skin cream, a bath olor a hair coloring gel Relevant information and budgeted annual income statements for each of the products to OWL Budgeted sales Relevant Information Skin Creambath 0:1 Color Gel 106,000 186,000 56,000 5 10 $ 65 1 2 2 S S Expected sales price (b) Variable costs per unit (c) Income statements Sales revenue ( 1.060.000 $1,116,000 $ 792,000 Variable costs (212,000) (186,000) 396,000) Contribution margin Fixed costs Net income 848,000 (528,000) 320.000 930,000 (550,000) 380.000 396,000 102,000) $294.000 $ $ Required: a. Determine the margin of safety as a percentage for each product. b. Prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume c. For each product, determine the percentage change in net income that results from the 20 percent increase in sales d. Assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics ne? e. Assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line? Complete this question by entering your answers in the tabs below. Reg A Reg B Reg C Reg D to For each product, determine the percentage change in net income that results from the 20 percent increase in sales. (Round your answers to whole percentage values.) Skin Bath Oil Color Gel Cream Percentage change in net ReqB Req D to E > Benson Company is considering the addition of a new product to its cosmetics line. The company has three distinctly different options: a skin cream, a bath olor a hair coloring gel. Relevant information and budgeted annual Income statements for each of the products follow Budgeted sales in unito (a) Expected sales price (b) Variable costs per unit (c) Income statements Sales revenue ( Relevant Information Skin Cream Bath 0:1 Color Gel 106,000 186,000 56,000 5 10 $ 65 1 2 $ 2 $ $ 6 1.060.000 $1,116,000 $ 792,000 Variable costs 1212.000) 186,000) 396,000) Contribution margin Fixed coats Net Income 848,000 (528,000) 320,000 930,000 (550,000) 380.000 396,000 102,000) $294.000 $ $ Required: a. Determine the margin of safety as a percentage for each product. b. Prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume c. For each product, determine the percentage change in net income that results from the 20 percent increase in sales. d. Assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics ne? e. Assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line? Complete this question by entering your answers in the tabs below. Reg A Req B Reg C Reg D to Assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? Assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics ine?