3.75 points Skipped eBook Print References Merline Manufacturing makes its product for $70 per unit and sells it for $132 per unit. The sales staff receives a commission of 10% of sales. Its December income statement follows. Sales Cost of goods sold Gross profit Selling, general, and administrative expenses Sales commissions (10%) Advertising office rent Administrative salaries Depreciation-Office equipment Office Insurance Net income MERLINE MANUFACTURING Income Statement For Month Ended December 31 Required 1 $ 132,000 204,000 24, 200 41,000 51,000 12,200 Management expects December's results to be repeated in January, February, and March without any changes in strategy. Management, however, has an alternative plan. It believes that if the unit selling price is reduced to $117 per unit and advertising is increased to $234,600 per month, sales units will be 11,000 for January, 12,100 for February, and 13,310 for March. The cost of its product will remain at $70 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same. Complete this question by entering your answers in the tabs below. Required 2 Required: 1. Prepare budgeted income statements for each of the months of January, February, and March that show results from implementing the proposed plan. 2. For the proposed plan, is income in March budgeted to be higher than income in December? $ 1,320,000 700,000 620,000 464,400 $ 155,600 MERLINE Prepare budgeted income statements for each of the months of January, February, and March that show results from implementing the proposed plan. Note: Enter your final answers in whole dollars.

Merline Manufacturing makes its product for $70 per unit and sels it for $132 per unit. The sales staff receives a commission of 10% of sales: Its December income stotement follows. Management expects December's results to be repeated in January. February, and March without any changes in strategy Management, however, has an alternative plan, it believes that if the unit selling peice is reduced to 517 per unit and actvertising is increased to $234,600 per month, sales units will be 11,000 for Jaruary. 12100 for February, and 13.310 for March. The cost of is product will remain at 570 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same Required: 1. Prepare budgeted income statements for each of the months of January, February, and March that show results from implementing the proposed plan. 2. For the proposed plan, is income in March budgeted to be higher than income in December? Complete this question by entering your answers in the tabs below. Prepare budgeted income statements for each of the monthis of asnoary, February and March thut show result from Inplementing the proposed plan. Noce: fnter yeur final anowere in whole dolars. Prepare budgeted income statements for each of the months of January, February, and March that show results from implementing the proposed plan. Note: Enter your final answers in whole dollars. Management expects December's results to be repeated in January, February, and March without any changes in strategy. Management, however, has an alternative plan. It believes that if the unit selling price is reduced to $117 per unit and advertising is increased to $234,600 per month, sales units will be 11,000 for January, 12,100 for February, and 13,310 for March. The cost of its product will remain at $70 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same. Required: 1. Prepare budgeted income statements for each of the months of January. February, and March that show results from implementing the proposed plan 2. For the proposed plan, is income in March budgeted to be higher than income in December? Complete this question by entering your answers in the tabs below. Merline Manufacturing makes its product for $70 per unit and sels it for $132 per unit. The sales staff receives a commission of 10% of sales: Its December income stotement follows. Management expects December's results to be repeated in January. February, and March without any changes in strategy Management, however, has an alternative plan, it believes that if the unit selling peice is reduced to 517 per unit and actvertising is increased to $234,600 per month, sales units will be 11,000 for Jaruary. 12100 for February, and 13.310 for March. The cost of is product will remain at 570 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same Required: 1. Prepare budgeted income statements for each of the months of January, February, and March that show results from implementing the proposed plan. 2. For the proposed plan, is income in March budgeted to be higher than income in December? Complete this question by entering your answers in the tabs below. Prepare budgeted income statements for each of the monthis of asnoary, February and March thut show result from Inplementing the proposed plan. Noce: fnter yeur final anowere in whole dolars. Prepare budgeted income statements for each of the months of January, February, and March that show results from implementing the proposed plan. Note: Enter your final answers in whole dollars. Management expects December's results to be repeated in January, February, and March without any changes in strategy. Management, however, has an alternative plan. It believes that if the unit selling price is reduced to $117 per unit and advertising is increased to $234,600 per month, sales units will be 11,000 for January, 12,100 for February, and 13,310 for March. The cost of its product will remain at $70 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same. Required: 1. Prepare budgeted income statements for each of the months of January. February, and March that show results from implementing the proposed plan 2. For the proposed plan, is income in March budgeted to be higher than income in December? Complete this question by entering your answers in the tabs below