Solve for Req B

$ 2 $ 4 $ 9 Variable costs per unit (c) Income statements Sales revenue (a x b) Variable costs (a X c) Contribution margin Fixed costs Net income $1,300,000 (260,000) 1,040,000 (816,000) $ 224,000 $1,890,000 (840,000) 1,050,000 (850,000) $ 200,000 $1,350,000 (810,000) 540,000 (174,000) $ 366,000 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. Req A Req B Reqc Reg D to E Prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. SOLOMON COMPANY Income Statements Skin Cream b ath Oil Color Gel Sales revenue Variable costs Contribution margin Fixed cost Net income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0