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Luker Company prepared the following budgeted income statement for the first quarter of 2018: (Click the icon to view the budgeted Income statement.) Luker Company is considering two options (Click the icon to view the options.) Read the requirements. i More Info Requirement 1. Prepare budgeted income statements for both options, assuming both options begin in January and January sales remain $8.000. R Begin by preparing the budgeted income statement for Option 1. Option 1 is to increase advertising by $1,500 per month. Option 2 is to use Luker Company i Data Table better-quality materials in the manufacturing process. The better materials will increase the cost of goods sold to 45% but will provide a better product at the Budgeted Income Statement sarrie sales price. The marketing manager projects either option will result in sales increases of 25% per month rather than 20% For the Quarter Ended March 31, 2018 January February Luker Company Sales Revenue $ 8,000 Budgeted Income Statement Print Done 3,200 For the Quarter Ended March 31, 2018 Cost of Goods Sold January February March Total Gross Profit 4,800 Net Sales Revenue 4,300 (20% increase per month) $ 8,000 $ 9,600 $ 11,520 $ S and A Expenses 29,120 Cost of Goods Sold (40% of sales) 3,200 3,840 4,608 Operating Income 500 Gross Profit 4,800 5,760 6,912 17,472 150 Income Tax Expense S and A Expenses ($2,000 + 10% of sales) 2,800 2,960 3,152 8,912 $ 350 Net Income Operating Income 2,000 2.800 3,760 8,560 Income Tax Expense (30% of operating income) 600 840 1,128 2,568 $ Net Income 1,400 $ 1,960 $ 2,632 $ 5,992 11,848 Print Done Enter any number in the edit fields and then click Check