Koil corporation generated $751,200 ordinary income from the sale of inventory to its customers. it also sold three noninventory assets during the year. compute koil’s taxable income assuming that
a. the first sale resulted in a $61,200 capital gain, the second sale resulted in a $17,200 capital loss, and the third sale resulted in a $25,000 capital loss.
b. the first sale resulted in a $18,700 ordinary gain, the second sale resulted in a $44,750 capital gain, and the third sale resulted in a $63,600 capital loss.
c. the first sale resulted in a $10,300 capital gain, the second sale resulted in a $24,900 capital loss, and the third sale resulted in an $11,900 ordinary loss.

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?