KENNE PROBLEM 5 (7%) Steve Corporation is using the kaizen approach to budgeting for 2018. The budgeted income statement for January 2018 is as follows: Sales (240,000 units) Less: Cost of goods sold Gross margin Operating expenses (includes $32,000 of fixed costs) Net income $360,000 240,000 120,000 96,000 $24.000 Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month. Required: 1. Describe the concept of kaizen budgeting. (2%) 2. Prepare a kaizen-based budgeted income statement for March of 2018. (7%)