Nettle Company prepared the following budgeted income statement for the first quarter of 2016 (Click the icon to view the budgeted income statement.) Nettle is considering two options. Option 1 ls o increase advertising by $1,400 per month Option 2 ls to use better quality materials In the manu acturing process. The better matenals will increase the cost o goods sold to 25% but will provide a better product at the same sales price. The marketing manager projects either option will result in sales increases of 25% per month rather than 20%. Read the requirements Requirement 1. Prepare budgeted income statements for both options assuming January sales remain 30,000 Begin by preparing the budgeted income statement for Option 1, (Round all amounts to the nearest whole number) 0 Requirements Nettle Company Budgeted Income Statement For the Quarter Ended March 31, 2016 1. Prepare budgeted income statements for both options assuming January sales remain S30,000 2. Which option should Nettle choose? Explain your reasoning January February March Total Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income ncome Tax Expense Net Income Print Done w prepare the budgeted income statement for Option 2. (Round all amounts to the nearest whole number.) 6:02 PM 11/5/2017 ^ Nettle Company Budgeted Income Statement For the Quarter Ended March 31, 2016 January February March Total Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income Income Tax Expense Net Income Requirement 2. Which option should Nettle choose? Explain your reasoning. If one of the two options is chosen, it would be the quarter than the $48,888 cutybudgeted, Nettle may decide | because net income for the quarter is expected to be higher under this option than the other However, because both options are expected to yield net i Nettle Company prepared the following budgeted income statement for the first quarter of 2016 (Click the icon to view the budgeted income statement.) Nettle is considering two options. Option 1 ls o increase advertising by $1,400 per month Option 2 ls to use better quality materials In the manu acturing process. The better matenals will increase the cost o goods sold to 25% but will provide a better product at the same sales price. The marketing manager projects either option will result in sales increases of 25% per month rather than 20%. Read the requirements Requirement 1. Prepare budgeted income statements for both options assuming January sales remain 30,000 Begin by preparing the budgeted income statement for Option 1, (Round all amounts to the nearest whole number) 0 Requirements Nettle Company Budgeted Income Statement For the Quarter Ended March 31, 2016 1. Prepare budgeted income statements for both options assuming January sales remain S30,000 2. Which option should Nettle choose? Explain your reasoning January February March Total Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income ncome Tax Expense Net Income Print Done w prepare the budgeted income statement for Option 2. (Round all amounts to the nearest whole number.) 6:02 PM 11/5/2017 ^ Nettle Company Budgeted Income Statement For the Quarter Ended March 31, 2016 January February March Total Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income Income Tax Expense Net Income Requirement 2. Which option should Nettle choose? Explain your reasoning. If one of the two options is chosen, it would be the quarter than the $48,888 cutybudgeted, Nettle may decide | because net income for the quarter is expected to be higher under this option than the other However, because both options are expected to yield net
