7. Steve Corporation is using the kaizen approach to budgeting for 2018. The budgeted income statement for January 2018 is as follows: Sales (240,000 units) Less: Cost of goods sold $360,000 240,000 Gross margin Operating expenses (includes $32,000 of fixed costs) 120,000 96,000 Net income $24.000 Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month Required: Prepare a kaizen-based budgeted income statement for March of 2018