Data Table Luker Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February Net Sales Revenue (20% increase per month) $ 8,000 $ 9,600 Cost of Goods Sold (40% of sales) 3,200 3,840 Gross Profit 4,800 5,760 March Total $ $ 29,120 11,520 4,608 6,912 3,152 11,648 17,472 2,800 2,960 8,912 S and A Expenses ($2,000 + 10% of sales) Operating Income Income Tax Expense (30% of operating income) 2,000 2,800 3,760 8,560 1,128 600 1,400 840 1,960 2,568 5,992 $ $ $ 2,632 $ Net Income Print Done More Info Option 1 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 45% 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%. Print Done Requirement 1. Prepare budgeted income statements for both options, assuming both options begin in January and January sales remain $8,000. Round all calculations to the nearest dollar. Begin by preparing the budgeted income statement for Option 1. Luker Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February March Total Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income Income Tax Expense Net Income Now prepare the budgeted income statement for Option 2. (Round all amounts to the nearest whole number.) Luker Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February March Total Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income Income Tax Expense Net Income