Question: Need help answering these problems have no idea/clue. Any help appreciated. Thornton Company is considering the addition of a new product to its cosmetics line.

Need help answering these problems have no idea/clue. Any help appreciated.
 Need help answering these problems have no idea/clue. Any help appreciated.
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 oil, or a hair coloring gel. Relevant information and budgeted
annual income statements for each of the products follow. Relevant Information Bath

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 oil, or a hair coloring gel. Relevant information and budgeted annual income statements for each of the products follow. Relevant Information Bath oil Skin Crean 134,000 Color Gel 94,000 Budgeted sales in units (a) Expected sales price (b) Variable costs per unit (c) Income statenents Sales revenue (a x b) Variable costs (a xc) Contribution margin Fixed costs Net income 214,000 1e $1,072,000 1,284,000 $1,316,000 (268,900)(856,900) (940,000) 376,000 (648,000) (360,000) (124,000) 252,000 884,000 428,000 $ 156,0e0 68,000 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. Which product has the highest operating leverage? e. Assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? f. Assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line? Req A Req B Req C1Reqs C2 to E Determine the margin of safety as a percentage for each product. (Round your answers to whole percentage values.) Skin Cream Bath Oil Color Gel Margin of safety Req B Req A Req B Req Ci Reqs C2 to E For each product, determine the percentage change in net income that results from the 20 percent increase in sales. (Round your answers to whole percentage values.) Skin CreamBath OilColor Gel Percentage change in net income

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