Merline Manufacturing makes its product for $65 per unit and sells it for 5131 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income statement follows PELINE ROFACTURING Income Statement Forth Ended Deceber 2009 Sales $1,319,000 Cost of goods sold 650.000 Gross profit 0.000 Operating cupenses Sales comissions (103) 131,000 Advertising 202,000 Store rent 24,100 Administrative salaries 40.500 Depreciation office equipment other penses Total expenses Net Income $ 190,00 50, 500 12.100 40,00 Management expects December's results to be repeated in January February, and March of 2020 without any changes in strategy Management, however, has an alternative plan. It believes that unit sales will increase at a rate of to each month for the next three months beginning with January) If the item's selling price is reduced to $116 per unit and advertising expenses are increased by 10% and remain at that level for all three months. The cost of its product will remain at 565 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 the expected results from implementing the proposed changes 2. Is net income for March expected to increase with the proposed strategy changes? Complete this question by entering your answers in the tabs below