9.09 points Lilliput, a one-product mail-order firm, buys its product for $55 per unit and sells it for $147 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income statement follows LILLIPUT COMPANY Income Statement For The Month Ended December 31, 2011 $1,470,000 550,000 Sales Cost of goods sold Gross proft Expenses 920,000 147.000 234,000 25,700 48,500 58,500 13,700 Sales commissions (10%) Store rent Administrative salaries Other expenses Total expenses 527,400 Net profit 392,600 Management expects December's results to be repeated in January, February, and March of 2012 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 tem's selling price is reduced to $132 per unit and advertising expenses are increased by 15% and remain at that level for all three months. The cost of its product will remain at $55 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same Required . Prepare budgeted income statements for each of the months of January, February, and March that show the expecterd results from implementing the proposed changes. (Input all amounts as positive values. Omit the "$" sign in your response. LILLIPUT COMPANY Budgeted Income Statement For Months of January, February, and March February January March Sales Cost of goods sold Gross profit $ 147000 Expenses Sales commissions Advortising Store rent Administrative salaries Depreciation Other expenses Total expenses Net profit