Nettle Company prepared the following budgeted income statement for the first quarter of 2016 EE (Click the icon to view the budgeted income statement.) Nettle is considering two options. Option 1 is to increase advertising by $1.400 per month. Option 2 is to use better quality materials in the manufacturing process. The better materials will increase the cost of 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 reguirements 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.) Nettle Compan Budgeted Income Statement For the Quarter Ended March 31, 2016 Requirements January February March Total 1. Prepare budgeted income statements for both options assuming January sales remain $30,000 Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income Income Tax Expense Net Income Now prepare the budgeted income statement for Option 2. (Round all amounts to the nearest whole number.) 2. Which option should Nettle choose? Explain your reasoning Print Done Nettle Compan 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 currently budgeted, 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 income for