Archer is considering two options option one is to increase advertising my $1400 per month option two is to use quality materials in the manufacturing process the better materials will increase the cost of good sold by 65%but I resent it will provide a better product at the same sales price the marketing manager Jack's they're optional result in sales increase of 15% per month rather than 5% prepare budgeted income statements for both options assuming January sales remain 20,000.

Data Table Archer Company Budgeted Income Statement For the Quarter Ended March 31, 2016 January February March Total (5% increase per month) $ 20,000 $ 21,000 $ 22,050 $ 63,050 2,000 12,600 13,230 37,830 ,400 8820 25,220 5,000 5,100 5.205 15305 ,0003,3003,6159,915 600 6607231,983 2.400 6402.892 7,932 | Sales Revenue Cost of Goods Sold Gross Profit sand A Expenses Operating Income Income Tax Expense (20% of operating income) Net Income (60% of sales) 8,000 rest w, ($3,000 + 10% of sales) -.. Print Done