Merline Manufacturing makes its product for $60 per unit and sells it for $130 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 2016 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 $115 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 $60 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same.

1.) Prepare budgeted income statements for each of the months of January, February, and March that show the expected results from implementing the proposed changes. (I have already filled some of it out but I can't figure out how to get the rest)

MERLINE MANUFACTURING Income Statement For Month Ended December 31, 2015 Sales Cost of goods sold $1,300,000 600,000 700,000 Gross profit Operating expenses Sales commissions (10%) Advertising Store rent Administrative salaries Depreciation-Office equipment Other expenses 130,000 200,000 24,000 40,000 50,000 12,000 Total expenses 456,000 Net income $244,000