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please help me SER Merline Manufacturing makes its product for $75 per unit and sells it for $150 per unit. The sales staff receives a
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SER Merline Manufacturing makes its product for $75 per unit and sells it for $150 per unit. The sales staff receives a commission of 10% of sales, Its December income statement follows $ 2,250,000 1.125,000 1,125,000 Sk MERLINE MANUFACTURING Income Statement For Honth Ended December 31 Sales Cost of goods sold Gross profit Selling, general, and administrative expenses Sales comissions (100) Advertising Office rent Administrative salaries Depreciation-office equipment office Insurance Net income ces $225,000 250,000 30.000 45,000 50,000 10,000 610,000 5 515,000 Management expects December's results to be repeated in January, February, and March without any changes in strategy Management, however, has an alternative plan. It believes that if the unit selling price is reduced to $125 per unit and advertising is increased to $287.500 per month, sales units will be 16,500 for January 18,150 for February, and 19.965 for March. The cost of its product will remain at $75 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same Required: 1. Prepare budgeted income statements for each of the months of January February, and March that show results from implementing the proposed plan 2. For the proposed plan, is income in March budgeted to be higher than income in December? on your answer met OW Required 1 Required 2 125 points Prepare budgeted Income statements for each of the months of January February, and March that show results from implementing the proposed plan. (Enter your final answers in whole dollars.) eBook References MERLINE MANUFACTURING Budget Sales January 2,062.500 February March Budgeted sales (in units) Budgeted sales (in dollars) MERLINE MANUFACTURING Budgeted Income Statement January anty March Selling general and administrative expenses Sains commissions Budgeted sales (in dollars) MERLINE MANUFACTURING Budgeted Income Statement January February March Selling, general, and administrative expenses Sales commissions Advertising Office rent Administrative salaries Depreciation-Office equipment Office Insurance 0 0 0 Total expenses $ 0 0 $ 0 $ Required 2 > Step by Step Solution
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