Munoz 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 Information Bath 0il Skin Cream Color Gel 82,000 14 122,000 202,000 Budgeted sales in units (a) Expected sales price (b) Variable costs per unit (c) Income statements Sales revenue (a b) Variable costs (a c) Contribution margin Fixed costs Net income $1,342,000 244,000 1,098,000 720,000 $ 378,000 $1,616,000 (606,000 1,010,000 750,000 $ 260,000 $1,148,000 656,000 492,000 150,000 342,000 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