The cogeneration plant institutes a policy that no one may work more than eight hours per day. As a result, which of the following statements is consistent with the 8-hour day
policy?

A. Only workers in the Fuel Gas Compressor House, the Turbine Generator Module,
near the Boiler, and in the Work Area must wear hearing protection
B. Only workers in the Fuel Gas Compressor House, the Control Room, and the
Demineralizer Station must wear hearing protection
C. Only workers in the Turbine Generator Module, Acid Caustic area, near the Boiler,
and in the Work Area must wear hearing protection
D. All indoor workers will need to wear hearing protection, but outdoor workers must
wear hearing protection

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?