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Sve Amorette's Patisserie is considering the addition of a new signature pastry to ts bakery menu. The company has resu different options: a NY. Cheesecake

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Sve Amorette's Patisserie is considering the addition of a new signature pastry to ts bakery menu. The company has resu different options: a NY. Cheesecake a Key Lime Tart or a Mickey Mousse. Relevant information and budgeted articome statements for each of the products follow Help Set W Budgeted sales in units (a) Expected sales price (6) Variable costs per unit (c) Income statements Sales revenue (axb) Variable costs ( X ) Contribution margin Fixed costs Relevant Information N.Y. Key Line Cheesecake Tact 112,000 192,000 $ 9 5 5 $ 2 $ 2 5 Wicke $ 72,000 12 7 $1,000,000 (225.000) 784,000 {$25.000) $ 259,000 $ 960,000 (214,000 576,000 (325,000) 5.201,000 $ $4,000 (30.000) 300,000 200,000 $ 200,000 Net income 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 fiat results from the 20 percent increase d. Assuming that management is pessimistic and risk averse, which product should the company and oth bokeynes e. Assuming that management is optimistic and risk aggressive, which product should the company and to its bakery mom Nat> - this question by entering your answers in the tabs below. dnswers in the tabs below. Req A ReqB Reqc Reg D to E Determine the margin of safety as a percentage for each product. (Round your answers to whole percentage N.Y. Cheesecake Key Limo Tart Mickey Mousse Margin of safety 96 ReqB the tabs below. Req A Reg B Reg Reg D to E Prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume AMORETTE'S PATISSERIE Income Statements N.Y. Cheesecake Key Lime Tart Mickey Mousse Sales revenue Variable costs Contribution margin Fixed cost Net income ReqC ( ReqA Reg A Reg B Realo Reg D to E For each product, determine the percentage change in net income that results from the 20 percent increase in salesRound your answers to whole percentage values.) NY MICKY Mousse Percentage change in net income Cheesecake Key Limo Tort ntering your answers in the tabs below. any to be Reg A Reg B Reg C Realto E Assuming that management is pessimistic and risk averse, which product should the company add to its bakery menu? Assuming that management is optimistic and risk aggressive, which product should the company add to its bakery menu & ReqC

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