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Please help! Manufacturing makes its product for STo per unit and sells it for $144 per unit. The sales staff eceives a 10% commission. on

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Manufacturing makes its product for STo per unit and sells it for $144 per unit. The sales staff eceives a 10% commission. on the sale of each unit. Its Deoemberinoome statement follows. MERLINE MANUFACTURING For Month Ended December 31, 2015 S 1A40,000 Cost of goods sold 700,000 Gross profit 740,000 Operating expenses Sales commissions (10%) 144,000 Advertising Administrative salaries 47.000 Depreciation-office equipment 13400 514,800 225,200 Net income Management expects December's results to be repeated in January, February, and March of 2016 without any in strategy. Management, an alternatve plan. believes that unit sales wil increase at a rate of 10% each month for the next three months (beginning with January) selling price is reduced to $129 per unit and advertising expenses are increased by 25% and remain at th lovel for all three months. The cost product STo unit, he saes stan wilco nue to eam a 10% commission, and the remaining expenses wil stay the same budgeted income statements for each of the of January, February and March that show the expected results the proposed changes. MERLINE MANUFACTURIN or Months of January, February, and March, 2016

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