PIVO-40 SI King Company prepared the following budgeted income statement for the first quarter of 2024 (Cick the icon to view the budgeted income statement) King Company is considering two options Click the icon to view the options Read the requitements Requirement 1. Prepare budgeted Income statements for both options, assuming both options begin in January and January sales remain $8,000 Round all calculations to the nearest dollar Bogin by preparing the budged income statomont for Option 1 Kling Company Budgeted Income Statement For the Quarter Ended March 31, 2024 January February $ 9,000 9000 1200 3840 4.800 5760 3.400 1700 - X More Info Sales Rovence Cost of Goods Sold Gross Pront S and A Expenses Operating incomo Income Tax Expense Opbon 15 to increase advertising by $600 per month Option 2 is to use botter quality materials in the manufacturing process. The better materials will increase the cost of goods sold to 45% but will provide a better product at the same sales price. The marketing manager projects either option will result in sales increases of 30% per month rather than 20% 1.400 4000 420 800 S 980 3200 Nel Income Print Done Enter any number in the edit fields and then click Check Answer. Score: 0.1 Question Help Data Table - X options ons) nuary sales romain $8.000. Round all Total Kling Company Budgeted Income Statement For the Quarter Ended March 31, 2024 January February March Net Sales Revenue (20% increase per month) S 8,000 $ 9.600 s 11 520 5 Cost of Goods Sold (40% of sales) 3,200 3.840 4,608 Gross Profit 4300 5.760 6,012 Sand A Expenses ($2,000 + 10% of sales) 2,800 2.950 3,152 Operating Incomo 2.000 2,800 3.760 Income Tax Expense (30% of operating income) 800 840 1,128 Net Income S 1,400 $ 1,960 2,632 $ 29,120 11,648 17,472 8.912 8,560 2.568 5,992 - X $ - X Print Done TOMTOTOX EXOTISE $ 980 3200 Not Income 1. Prepare budgeted income statements for both options, assuming both options begin in January and January Sales remain 58,000. Round all calculations to the nearest dolar 2. Which option should Kling choose? Explain your reasoning Enter any number in the edit fields and then click Check A 7 parts remaining Print Done Begin by preparing the budgeted income statement for Option 1. (Round all amounts to the nearest whole number.) Nettle Company i 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 Now prepare the budgeted income statement for Option 2. (Round all amounts to the nearest whole number.) 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 because net income for the quarter is expected to be higher under thi the quarter than the $48,888 currently budgeted, Nettle may decide