(6).

Problem 11-29 Margin of safety and operating leverage LO 11-4, 11-6 Carmon 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 oil, or a hair coloring gel. Relevant information and budgeted annual income statements for each of the products follow. Relevant Information Skin Cream Bath Oil Color Gel 94,000 Budgeted sales in units (a) 34,000 214.000 Expected sales price (b) 8.00 S 6.00 14.00 Variable costs per unit (c) 2.00 S 4.00 S 10.00 Income statements Sales revenue (a x b) $1,072,000 S1,284,000 $1,316,000 Variable costs (a x c) (268,000) (856,000) (940,000) 804,000 376,000 Contribution margin 428.000 Fixed costs (648,000) (360,000) (124,000) Net income 156,000 S 68,000 252,000 Required a. Determine the margin of safety as a percentage for each product. (Round your answers to nearest whole percent.) Bath Oil Skin Cream Color Gel Margin of safety