Please answer both Requirement 1 and Requirement 2 for the following problem:

P22-46A (similar to) Shaner Company prepared the following budgeted income statement for the first quarter of 2018: Click the icon to view the budgeted income statement) Question Help Shaner Company is considering two options O (Click the icon to view the options) Read the teguiL.emen.ts Requirement 1. Prepare budgeted income statements for both options, assuming both options begin in January and January sales remain S15,OOD Round all calculations to the nearest dollar Begin by preparing the budgeted income statement for Option I Shaner Company Budgeted Income Statement For the Quarter Ended March 1,801 January Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income Income Tax Expense Net ncome O Data Tue Nel Sag o' Sd S A Excs O More Info FM 3 t. 2018 18.coo s J 7co 2' 600 S 12960 54600 32760 12 n 97&0 Option I is to increase advertising by SI 1000 per montm 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 ether option will result in sales increases Of per month rather than 20%. O Requirements 1. Prepare budgeted income statements for both options, assuming both options begin in January and January sales remain S15,OOO Round all calculations to the nearest dollar 2. Which option should Shaner choose? Explain your reasoning.