Data Table X Shaner Company Budgeted Income Statement For the Quarter Ended March 31, 2018 fanuary February March Total Net Sales Revenue (20% increase per month) 8,000 $ 9,600 $ 11,520 $ 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 3,760 8,560 Income Tax Expense (30% of operating income) 1,128 2,568 600 840 $ 1,400S 1,960 $ 2,632 S 5,992 Net Income Print Done Read the require ements for both options, assuming both options begin in January and January sales remain $8,000. R nent for Option 1 - X i Requirements 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 2. Which option should Shaner choose? Explain your reasoning. Print Done Net Cos More Info Gro S a Ope Option 1 is to increase advertising by $900 per month. Option 2 is to use process. The better materials will Inco Print Done More Info Option 1 is to increase advertising by $900 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% Print Done Clear All Score: 0 of 5 pts P22-46A (similar to) Shaner Company prepared the following budgeted income statement for the first quarter of 2018 EEB Click the icon to view the budgeted income statement.) Requirement 1. Prepare budgeted income statements for both options, assuming both options begin in Begin by preparing the budgeted income statement for Option 1 Shaner Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January 8000 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, parts remaining