Merline Manufacturing makes its product for $60 per unit and sells it for $133 per unit. The sales statt receives a commission of 10% of sales. Its December income statement follows MERLINE MANUFACTURING Income Statement For Month Ended December 31 Sales $ 1,338,000 Cost of goods sold 600,000 Gross profit 730.000 Selling, general, and adsinistrative expenses $ 133,000 Advertising 206,000 Office rent 24,300 Administrative salaries 41,500 Depreciation-office equipment 51,500 Office Insurance 12,300 468,600 Net Income Management expects December's results to be repeated in January, February, and March without any changes in strategy Monagement, however, has an alternative plan. It believes that if the unit selling price is reduced to $118 per unit and advertising is increased to $247,200 per month, sales units will be 11.000 for January 12,100 for February, and 13,310 for March. The cost of ts 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: 1. Prepare budgeted income statements for each of the months of January, February, and March that show results from implementing the proposed plan 2. For the proposed plan, is income in March budgeted to be higher than income in December? Complete this question by entering your answers in the tabs below. Druired Rated (LILI your al diswers in whole dollars.) MERLINE MANUFACTURING Budgeted Sales January 11,000 $ 118 $ 1,298,000 March February 12,100 13,310 Budgeted sales (in units) Budgeted selling price per unit Budgeted sales (in dollars) 118 $ 118 1,427,800 1,570,580 March MERLINE MANUFACTURING Budgeted Income Statement January Sales $ 1,298,000 $ Cost of goods sold Gross profit Selling, general, and administrative expenses February 1,427,800 $ 1,570,580 Sales commissions Advertising Office rent Administrative salaries Depreciation Office equipment Office insurance Total expenses 0 0 Oo $ $ 0 Net income 0 0