On january 1, 2017, the dental partnership of angela, diaz, and krause was formed when the partners contributed $39,000, $67,000, and $69,000, respectively. over the next three years, the business reported net income and (loss) as follows: 2017 $ 79,000 2018 51,000 2019 (34,000 ) during this period, each partner withdrew cash of $15,000 per year. krause invested an additional $6,000 in cash on february 9, 2018. at the time that the partnership was created, the three partners agreed to allocate all profits and losses according to a specified plan written as follows: each partner is entitled to interest computed at the rate of 10 percent per year based on the individual capital balances at the beginning of that year. because of prior work experience, angela is entitled to

Fanning 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 cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 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?