Merline Manufacturing makes its product for $55 per unit and sells it for $135 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income statement follows.

Management expects Decembers results to be repeated in January, February, and March of 2018 without any changes in strategy. Management, however, has an alternative plan. It believes that unit sales will increase at a rate of 10% each month for the next three months (beginning with January) if the item's selling price is reduced to $120 per unit and advertising expenses are increased by 25% and remain at that level for all three months. The cost of its product will remain at $55 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same.

bat. Import bockmaks Help Sav& Che Ch 20 Connect Assignment Mcrtine Manufacturing makes ts proxtuct for $55 per unit and sells t for $135 per unit. The sales staff receives a 10% commise the sale of each unit. Its December income statement follows 13 125 points 1,550,O Cost of goods sald Grass profit ales comissions (ent) Advertising 135,099 210,00 Depreciation Office equipment Net income 323,000 Management expects December's Management, however, has an alt results to be repeated in January, February, and March of 2018 without any changes in strat of 10% each month for the next ernative plan It believes that unit sales will increase at a rat f the item's seling price is reduced to $120 per unit and advertising expenses are increased t and remain at that level for all three months. The cost of its product will remain at $55 per unit, the sales staff will continue to e 10% commission, and the remaing expenses will stay the same Required: Prepare budgeted income statements for each of the months of January, February, and March that show the expected results f mplementing the proposed changes. (Enter your final answers in whole dollars.) Budgeted Sales For Months of January. February, and March, 2018 March Budgeted sales (in delars Prey 13 of 13 hp 1702