core: 2.85 of 6 pts 4 of 4 PP22-46A (similar to) Holly Company prepared the following budgeted income statement for the first quarter of 2018: E(Click the icon to view the budgeted income statement.) www. wwww.swax 10,400 $ 13,520 $ 8,000 $ 31,920 Sales Revenue 3,200 4,160 5,408 12,768 Cost of Goods Sold 4,800 6.240 8,112 19,152 Gross Profit 11,292 3,500 3,740 4,052 S and A Expenses 4,060 7,860 Operating Income 1,300 2,500 750 2,358 390 1,218 Income Tax Expense $ 910 1,750 $ 2,842 $ 5,502 Net Income Now prepare the budgeted income statement for Option 2. (Round all amounts to the nearest whole number.) Holly Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income Income Tax Expense Net Income Enter any number in the edit fields and then click Check Answer 4 Clear All parts remaining MacBook P esc E3 FA F2 F1 LE * HW S 4 of 4 (4 complete) Holly Company is considering two options. (Click the icon to view the options.) 018: Read the requirements options begin in January and January sales remain $8,000. Round all calculations to the nearest dollar. More Info Option 1 is to increase advertising by $700 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 45 % but will provide a better product at the same sales price. The marketing manager projects either option will result in sales increases of 30 % per month rather than 20 % Data Table Print Done Holly Company Budgeted Income Statement For the Quarter Ended March 31, 2018 Ja February y March Total Net Sales Revenue (20% increase per month) $ 8,000 $ 9,600 $ 11,520 S 29,120 Cost of Goods Sold (40 % of sales) 3,200 3.840 4,608 11,648 Gross Profit 4,800 5,760 6,912 17,472 S and A Expenses ($2.000 10 % of sales) 2,800 2.960 3,152 8.912 Operating Income 2,000 2.800 8.560 3,760 Income Tax Expense (30 % of operating income) 600 840 1,128 2,568 1,400 S Net Income 1,960 S 2.632 S 5,992 Chec MacBook Pro DII DD FS FB F9 F10 F1