Relevant information Skin Cream Bath Oil Color Gel 106,000 186,000 66,000 10 Budgeted sales in units (a) Expected sales price (b) Variable costs per unit (c) Income statements Sales revenue (axb) Variable costs (a xe) Contribution margin Fixed costs Net income $1,060,000 (212,000) 848,000 (528,000). $ 320,000 $1,116,000 (186,000) 930,000 (550,000) $ 380,000 $ 792,000 (396,000) 396,000 (102,000) $ 294,000 Required: a. Determine the margin of safety as a percentage for each product. he 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. Req A Reg B ReqC Reg D to E Determine the margin of safety as a percentage for each product. (Round your answers to whole percentage values.) Bath Oil Color Gel Skin Cream 1% Margin of safety Prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. BENSON COMPANY Income Statements Skin Cream Bath Oil Color Gel Sales revenue S 0 S Variable costs Contribution margin Fixed cost Net income $ 0 $ Relevant Information Skin Cream Bath Oil Color Gel 106,000 186,000 66,000 10 $ 12 2 $ Budgeted sales in units (a) Expected sales price (b) Variable costs per unit (c) Income statements Sales revenue (a xb) Variable costs (a X c) Contribution margin Fixed costs Net income Sped $1,060,000 (212,000) 848,000 (528,000) $ 320,000 $1,116,000 (186,000) 930,000 (550,000) $ 380,000 $ 792,000 (396,000) 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 persent 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? arences Complete this question by entering your answers in the tabs below. Req A ReqB Reg C Reg D to E 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 Cream Bath Oil Color Gel Percentage change in net income Relevant Information Skin Cream Bath Oil Color Gel 106,000 186,000 66,000 10 Budgeted sales in units (a) Expected sales price (b) Variable coste per unit (c) Income statements Sales revenue (axb) Variable costs ( a c ) Contribution margin Fixed coats Net Incone $1,060,000 (212,000) 848,000 (528.000) $ 320,000 $1,116,000 (186,000) 930,000 (550,000) $ 380,000 $ 792,000 396,000) 196.000 (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 Red B Reqc Rey 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 line
