Luker Company prepared the following budgeted Income statement for the first quarter of 2018 Click the icon to view the budgeted Income statement) Luker Company is considering two options. (Click the icon to view the options) Read the requirements Begin by Data Table Sales Re Cost of Gross P Total S and A 91.000 Operatin Luker Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February March Net Sales Revenue (20% increase per month) $ 25,000 $ 30,000 $ 36.000 5 Cost of Goods Sold (20% of sales) 5.000 6.000 7.200 Gross Profit 20,000 24,000 28,800 S and A Expenses ($3,000 + 12% of sales) 6,000 6,600 7320 Operating Income 14.000 17.400 21,480 Income Tax Expense (20% of operating income) 2.800 3,480 4.296 $ 11,200 5 13.920 $ 17.184 s Net Income 18 200 income 72,800 19.920 Net Inco 52,880 Enter any 10,576 42,304 EXI Print Done More Info - - Option 1 is to increase advertising by $1,000 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 25% 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 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 Requirement 2. Which option should Luker choose? Explain your reasoning If one of the two options is chosen, it would be because both options are expected to yield because net income for the quarter is expected to be higher under this option. However v net income for the quarter than the $42,304 currently budgeted, Luker may decide file and then continue to the next