Thornton 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 o. 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 result 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 ilsk aggressive, which product should the company add to its cosmetics line? Complete this question by entering your answers in the tabs below. 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 ir c. For each product, determine the percentage change in net income that results d. Assuming that management is pessimistic and risk averse, which product shoul e. Assuming that management is optimistic and risk aggressive, which product sh Complete this question by entering your answers in the tabs below. Determine the margin of safety as a percentage for each product. (Round your answe Complete this question by entering your answers in the tabs below. Prepare revised income statements for each product, assuming a 20 percent in 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 vo c. For each product, determine the percentage change in net income that results from the 20 percent increase in d. Assuming that management is pessimistic and risk averse, which product should the company add to its cosme e. Assuming that management is optimistic and risk aggressive, which product should the company add to its cosn Complete this question by entering your answers in the tabs below. For each product, determine the percentage change in net income that results from the 20 percent increase in sales. (Ro your answers to whole percentage values.)
