Chapter 11 Homework i 5 20 points eBook Print References Campbell 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 oil, or a hair coloring gel. Relevant information and budgeted annual income statements for each of the products follow: Budgeted sales in units (a) Expected sales price (b) Variable costs per unit (c). Income statements Sales revenue (a x b) Variable costs (a x c) Contribution margin Fixed costs Net income Req A Req B Margin of safety Req C Skin Cream 108,000 $7 $2 Complete this question by entering your answers in the tabs below. $ 756,000 (216,000) 540,000 (345,000) $ 195,000 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? Skin Cream % Req D to E Determine the margin of safety as a percentage for each product. Note: Round your answers to whole percentage values. Bath Oil Relevant Information Bath Oil 188,000 $5 $2 $ 940,000 (376,000) 564,000 (345,000) $ 219,000 % $ 748,000 (476,000) 272,000 (72,000) $ 200,000 Help Save & Exit Check

Camplell Company is considering the addtion of a new product to its cosmetics line. The company has three distinctly different options a skin cream a bath oil, of a hair coloring gel Relevant information and budgeted annuat income statements for each of the products foliow Required a. Deteraine the margin of safety as a percentege 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 peicentage change in net income that results from the 20 percent increase in sales d. Astuming that marsoement is pessmistic and risk averw, which product should the corpeny add to is cosmetics line? e. Assuming that manapement is optimistic and isk aggessive, which product should the company add to its cosmetics line? Complete this question by entering vour answers in the tabs below. Determine the margin of salety as a percentage for each product: Fotes Round your answers to whole percentage volues 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 manegement is pessimistic and risk averse, which product should the company odd to its cosmetics line? e. Assuming that management is optimistic and risk agoressive, which product should the company add to its cosmetics line? Complete this question by entering your answers in the tabs below. 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? d. Assuming that management is pessimistic and risk averse, which peodud ahould the company add to iss cosmetics line? 0. Assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line? Campbell Company is considering the addition of a new product to its cosmetics line. The company has three distinctly different options: a skin crearn, a bath of of a hair coloring get. Relevant information and budgeted annual income statements for each of the products follow 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 manegement 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. For each product, determine the percentage change in net income that results from the 20 percent increase in sales. Note: Round your answers to whole percentage values. 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 budigeted 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 managenent is pessimistic and isk averse, which product should the company add to its cosmetics line? e. Assuming that management is optimistic and risk aggressive, which product should the compary add to its cosmetics line? Complete this question by entering your answers in the tabs below. Prepare revised income statements for each product, assuming a 20 percent increase in the budgeted soles volume