Company is consi product to Its cosmetics has three distinctly different options: a skin cream, a bath Oil. Or a hair coloring gel. Relevant informa- lion und budgeted annual inconr staternents fcy each of the products follow. Relevant Information Budgeted Saz in untS (a) EX*Cted sales price (b) Variable costs per unit (c) Income statements Sales revenue x b) Variable x Q Contribution margin Fixed costs Net incorne Required Skin 120.000 S 700 $ 200 "40.000 (240.000) 600.000 (480.000) $120.000 Bath on 216.000 $ 400 $ 100 $864,000 648.000 (540.000) $108,000 Color Gel 72.000 S 10.00 $ 6.00 $720.oco 288.000 (120.000) $168.000 a. Determine margin Of a percentage for each product. Round your figures to two deci- mul b. Prepare revised income statements for each product, assuming a 25 percent increase in the bud- geted sales c. For each product. determine the percentage Change in net income that results from the 25 percent increase in sales. Which product has the highest operating leverage? Round your figures to two decimal vxjints. d. Assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? Explain your answer. e. Assuming that management is (Otimistic risk aggressive. which should the corninny add to its eosrneties line? Explain your answer.