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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

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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 icon to view the options.) Read the requirements Requil calcul les remain $25,000. Round all Data Table Begin 1 More Info Sales Option 1 is to increase advertising by 51.200 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 25% but will provide a better product at the same sales price. The marketing manager projects either option will result in sales increases of 25% per month rather than 20% Net Sales Reven Cost of Goods sa Gross Profit S and A Expense Operating Income Costa Gross S and Opera Incom Print Done Income Tax Expel Not in $ 11,200 $ 13,920 S 17.184 S 42,304 Net Income Enter Print Done 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. i (Click the icon to view the options.) Read the requirements. Total Avery Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February March Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income Income Tax Expense Net Income Requirement 2. Which option should Avery choose? Explain your reasoning If one of the two options is chosen, it would be because net income for the quarter is expected to be higher under this option. However, because both options are expected to yield net income for the quarter than the $42,304 currently budgeted, Avery may decide Enter any number in the edit fields and then continue to the next

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