P22-46A (similar to) Archer Company prepared the following budgeted income statement for the first quarter of 2018: (Click the icon to view the budgeted income statement.) Archer Company is considering two options. i (Click the icon to view the options.) A Data Table - X st dollar. Requirement 1. Prepare budgeted income statements for bot Begin by preparing the budgeted income statement for Option Archer Company Budgeted Income Statement For the Quarter Ended March 31, 201 January Sales Revenue Cost of Goods Sold Gross Profit Archer Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February March Net Sales Revenue (20% increase per month) S 15,000 $ 18,000 $ 21,600 $ Cost of Goods Sold (60% of sales) 9,000 10,800 12,960 Gross Profit 6,000 7,200 8,640 S and A Expenses ($2,200 + 10% of sales) 3,700 4,000 4,360 Operating Income 2,300 3,200 4,280 Income Tax Expense (20% of operating income) 460 640 856 1,840 $ 2,560 $ 3,424 $ Net Income Total 54,600 32,760 21,840 12,060 S and A Expenses Operating Income 9,780 1,956 7,824 Income Tax Expense Net Income Print Done P22-46A (similar to) Archer Company prepared the following budgeted income statement for the first quarter of 2018: (Click the icon to view the budgeted income statement.) Archer Company is considering two options. i (Click the icon to view the options.) Read the requirements. Requirement 1. Prepare budgeted income statements for both options, assuming both options begin in January and January sales remain $15,000. Round all calculations to the nearest dollar. Begin by preparing the budgeted income statement for Option 1. i Requirements Archer Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January Sales Revenue 1. Prepare budgeted income statements for both options, assuming both options begin in January and January sales remain $15,000. Round all calculations to the nearest dollar. 2. Which option should Archer choose? Explain your reasoning. Cost of Goods Sold Gross Profit S and A Expenses Operating Income Print Done] Income Tax Expense Net Income P22-46A (similar to) Archer Company prepared the following budgeted income statement for the first quarter of 2018: (Click the icon to view the budgeted income statement.) Archer Company is considering two options. (Click the icon to view the options.) Read the requirements Requirement 1. Prepare budgeted income statements for both options, assuming both options begin in January and January sales remain $15,000. Round all calculations to the nearest dollar. Begin by preparing the budgeted income statement for Option 1. Archer Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income Income Tax Expense Net Income 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 65% 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%. Print Done