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Mertine Manufacturing makes its product for $55 per unit and selst for 135 per unit. The sales stall receives a 10% commission on the sale
Mertine Manufacturing makes its product for $55 per unit and selst for 135 per unit. The sales stall receives a 10% commission on the sale of each unit is December income statement follows YOLU BUVUTATUD Tent The Handwee33.0 31,150,000 ut at de sol 330.000 Cross proti 800.000 Oeting Sac 100) 135.00 Misi 210.100 She rent 24,500 istrative salari 42,500 Depreciation equipment $2,500 Other ex 12.500 Totale 427,000 331,000 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 10% each month for the next three months beginning with January if the item's selling price is reduced to 5120 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 $55 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same Required: Prepare budgeted income statements for each of the month 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. Required Required Prepare budgeted income statements for each of the month of January, February, and March that show the expected results from implementing the proposed changes intervour finalwers in whole dar) MERLINE MANUFACTURINO Budgeted sales For Month of January February, and March, 2020 January February March Budgetinis) Suded ng pceperunt 120 Budgeted sales in ons MERLINE MANUFACTURING Budgeted Income Statement For Month of January February, and March, 2020 January February March Cost of good Grosso Esperes Sales commissione Advertising Store Administrative Depreciation Office oman Other expenses Totale income
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