Merline Manufacturing makes its product for $65 per unit and sells it for $137 per unit. The sales staff receives a 10% commission on he sale of each unit. Its December income statement follows MERLINE MANUFACTURING Income Statement For Month Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $1,370,000 650,000 720,000 Sales commissions (10%) Advertising Store rent Administrative salaries Depreciation-Office equipment Other expenses Total expenses 137,000 214,000 24,700 43,500 53,500 12,700 485,400 S 234,600 Net income 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) if the item's selling price is reduced to $122 per unit and advertising expenses are increased by 15% and remain at that level for all three months. The cost of its product will remain at $65 per unit, the sales staff will continue to earn a 0% commission, and the remaining 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 from mplementing the proposed changes. (Enter your final answers in whole dollers) 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 Other expenses Total expenses