Gambrell Company prepared the following budgeted income statement for the first quarter of 2018: (Click the icon to view the budgeted Income statement.) Garribrell Company is considering two options. (Click the loon to view the options.) Read the requirements Requirement 1. Prepare budgeted income statements for both options, assuming both options begin in January and January sales remain $25,000. Round all calculations to the nearest dollar. Begin by preparing the budgeted income statement for Option 1. i More Info Gambrell Company Budgeted Income Statement For the Quarter Ended March 31, 2018 Option 1 is to increase advertising by $1,500 per month. Option 2 is to use better-quality materials in the manufacturing process. The better materials will January increase the cost of goods sold to 65% but will provide a better product at the Sales Revenue i same sales price. The marketing manager projects either option will result in sales Data Table increases of 25% per month rather than 20%. Cost of Goods Sold Gross Profit Print Done Gambrell Company S and A Expenses Budgeted Income Statement Operating Income For the Quarter Ended March 31, 2018 Income Tax Expense January February March Total Net Income Nel Sales Revenue (20% increase per month) $ 25,000 $ 30,000 $ 36,000 $ 91,000 Cost of Goods Sold (60% of sales) 15,000 18.000 21.600 54,600 Gross Profit 10,000 12,000 14,400 36,400 S and A Expenses ($2,200 + 8% of sales) 4,200 4,600 5,080 13,880 Operating Income 5,800 7,400 9,320 22,520 Income Tax Expense (10% of operating income) 580 740 932 2.252 Net Income 5,220 $ 6,660 $ 8,388 $ 20,268 Enter any number in the edit fields and then click Check