Finch 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.Relevant InformationSkin CreamBath Oil Color GelBudgeted sales in units $($a$)112,000192,00072,000$Expected sales price $($b$)$$$9$$$5$$$12$Variable costs per unit $($c$)$$$2$$$2$$$7$Income statementsSales revenue $($a x b$)$$$1,008,000$$$960,000$$$864,000$Variable costs $($a x c$)(224,000)(384,000)(504,000)$Contribution margin$784,000576,000360,000$Fixed costs$(525,000)(375,000)(100,000)$Net income$$259,000$$$201,000$$$260,000$Required:a$.$ 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$1.$ For each product, determine the percentage change in net income that results from the $20$ percent increase in sales. c$2.$ Which product has the highest operating leverage?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.Req AReq BReq C$1$Req C$2$ to EDetermine the margin of safety as a percentage for each product.Note: Round your answers to whole percentage values.Skin CreamBath OilColor GelMargin of safety$\%\%\%$