Merline Manufacturing makes its product for $70 per unit and sells it for $132 per unit. The sales staff receives a commission of 10% of sales. Its December income statement follows. MERLINE MANUFACTURING Income Statement For Month Ended December 31 Sales $ 1,320,000 Cost of goods sold 700,000 Gross profit 620,000 Selling, general, and administrative expenses Sales commissions (10%) $ 132,000 Advertising 204,000 Office rent 24,200 Administrative salaries 41,000 DepreciationOffice equipment 51,000 Office Insurance 12,200 464,400 Net income $ 155,600 Management expects Decembers results to be repeated in January, February, and March without any changes in strategy. Management, however, has an alternative plan. It believes that if the unit selling price is reduced to $117 per unit and advertising is increased to $234,600 per month, sales units will be 11,000 for January, 12,100 for February, and 13,310 for March. The cost of its product will remain at $70 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