In 2014, the Spanish government passed a law to change a regulation, known as the open double quoteBeckham lawclose double quote, on foreign athletes. This new law will require foreign professional athletes to pay the standard Spanish tax rate of 52 percent on earnings of more than 300 comma 000 euros, up from the 24 percent rate they had been paying since 2005. For top-quality players, the elasticity of migration under the Beckham law was estimated to be 1.88 based on the average annual tax rate. Using this estimate of elasticity, the migration of top quality players to Spain should decrease by nothing%. Round your response to the nearest two decimal places.

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?