Avery Company prepared the following budgeted Income statement for the first quarter of 2018 EL (Click the icon to view the budgeted income statement.) Avery Company is considering two options Click the loon to vie Read the moments More Info Option is to increase advertising by $1.400 per month Option 2 is to use better quality materials in the manufacturing process. The better materials will Increase the cost of goods sold to 15but will provide a better product at the same sales price. The marketing manager projects other option will result in a increases of 25% per month other than 20% Total Begin by preparing the budgeted income statement for Option 1. Avery Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February March Sales Revenue Cost of Goods Sold Gross Pro Sand A Expenses Operating income Income Tax Expense Data Table Print Dono Net Income 18.200 7.2005 T20 Now prepare the budgeted income statement for Option 2. (Round all mounts to the nearest whole number Avery Company Budgeted Income Statement For the Quarter Ended March 31, 2018 Avery Company Budgeted Income Statement For the Quarter Ended March 1, 2018 January February Nor Sales Revenge (20% increase per month 5.000 $ 6.000 5 Cost of Good Son (10% of sales) 500 600 GoPro 4.500 S and AE (52.500 + 10% of sales 3.000 3.100 Opening Income 1,500 2.300 Income Tax Expense (10% of operating income) 450 5 Not income 1.050 3.200 7.000 2,118 Enter any number in the edit fields and then continue to the next question Avery Company prepared the following budgeted income statement for the first quarter of 2018 Click the icon to view the budgeted Income statement) Avery Company is considering two options Click the loon to vie Read the More Info Option is to increase advertising by 31.400 per month Option 2 is to use betul materials in the manufacturing process. The better materials wil increase the cost of goods sold to 15 but will provide a better product at the same le price. The marketing manager projects other option will result in a increases of 25 per month other than 20% Now prepare the budgeted income statement for Option 2. Round amounts to the nearest whole number) Avery Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February March Total Sales Revenue Cost of Goods Sold Gross Profit Sand AE Operating Income Income Tax Expense Net income Data Table Done Avery Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February Net Sales Revenue (20% increase per month 5.000 8.000 $ Cost of Good Sold (10% of sales 500 000 Gross Pro 4,500 5,400 Sand Expenses ($2,500 - 10% of 3.000 Operating Income 2,300 Income Tax Expenses of operating income) $ 1,0505 1,610 5 Not income March 7.2005 720 Requirement 2. Which option should Avery choose? Explain your reasoning because not income for the quarter is expected to be S4942 If one of the two option is chosen, I would be Currently budged, Avery may decide 8.50 3.220 3.250 16.30 9,330 7,060 2,118 Enter any number in the edit fields and then continue to the next question 2.2125 Net Income Requirement 2. Which option should very choose? Explain your reasoning one of the two option is chosen t would be because not income for the quarter is expected to be higher under this ction. However, because motors expected to yo Currently budget, Avery may decide Emery number in the selds and then continue to the next