Rooney 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 oll, or a hair coloring gel. 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 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

Req B

Req $C$

Req D to E

Determine the margin of safety as a percentage for each product.

Note: Round your answers to whole percentage values.

$\backslash$table$[[,$Skin Cream,Bath Oil,Color Gel,,$],[$Margin of safety,,$\%,,\%,]]$