2 Merline Manufacturing makes its product for $55 per unit and sells it for $135 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income statement follows. MERLINE MANUFACTURING Income Statement For Month Ended December 31, 2817 Sales Cost of goods sold Gross profit Operating expenses $1,358,800 55e,ee8 80e,eee 33.33 points Sales commissions (10%) Advertising Store rent Administrative salaries Depreciation-Office equipment Other expenses Total expenses 135,808 218,8e8 24,588 42,588 52,508 eBook 477,898 Print Net income $ 323,eee References Management expects December's results to be repeated in January, February, and March of 2018 without any changes in strategy. Management, however, has an alternative plan. It believes that unit sales will increase at a rate of 10% each month for the next three months (beginning with January) if the item's selling price is reduced to $120 per unit and advertising expenses are increased by 25% and remain at that level for all three months. The cost of its product will remain at $55 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same Requlred Prepare budgeted income statements for each of the months of January, February, and March that show the expected results from implementing the proposed changes. (Enter your final answers In whole dollars.) MERLINE MANUFACTURING Budgeted Sales For Months of January, February, and March, 2018 January February March Budgeted sales (in dollars) MERLINE MANUFACTURING Budgeted Income Statement For Months of January, February, and March, 2018 February March Expenses Sales commissions Store rent Administrative salaries Other expenses Total expenses