Merline Manufacturing makes its product for $60 per unit and sells it for $142 per the sale of each unit. Its December income statement follows. iit. The sales staff receives a 10% commission on MERLINE MANUFACTURING Incone Statenent For Month Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $1,428,009 600,080 828,ee0 Sales commissions (10%) Advertising Store rent Administrative selaries Depreciation-Office equipment Other expenses Total expenses 142,080 224,800 25, 200 46,000 56,080 13,200 es 505,40 Net income 313,680 Management expects December's 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 f the item's selling price ls reduced to $127 per ur itand advertising expenses are increased by 15% and remain at that level for all three months. The cost of its product will remain at $60 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same. Required: ome statements for each of the months of January February, and March that show the expected results from implementing the proposed changes. (Enter your final answers in whole dollars) MERLINE MANUFACTURING Budgeted Sales For Months of January, February, and March, 2018 January February March Budgeted sales (in dollars) MERLINE MANUFACTURING Budgeted Income Statement For Months of January, February, and March, 2018 January February March Expenses Sales commissions Advertising Store rent Administrative salaries Depreciation-Office equipment Other expenses Budgeted sales (in dollars) MERLINE MANUFACTURING Budgeted Income Statement For Months of January, February, and March, 2018 JanuaryFebruary March Expenses Sales commissions Advertising Store rent Administrative salaries Depreciation-Office equipment Other expenses Total expenses 0