Check my Problem 11-29 Margin of safety and operating leverage LO 11-6 Campbell 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. Skin CreamBath oil 188,000 Color Gel 68,000 Budgeted sales in units (a) Expected sales price (b) Variable costs per unit (c) Income statements 108,000 $ 756,0009 940,000748,000 variable costs (a C) Contribution margin Fixed costs Net income (216,000)(376,000 564,000 (345,000)345 000)(72,000) s 195,000 219,000200,000 540,000 272,000 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 Req C Reg D to E Determine the margin of safety as a percentage for each product. (Round your answers to whole percentage values.) Prey 1 of 2 Next >