Problem 20-3A (Algo) Manufacturing: Preparation and analysis of budgeted income statements LO P3 Merline Manufacturing makes its product for $70 per unit and sells it for $138 per unit. The sales staff receives a commission of 10% of sales. Its December income statement follows. Management expects December's results to be repeated in January. February, and March without any changes in strategy. Management, however, has on alternative plan. It believes that if the unit selling price is reduced to $123 per unit and advertising is increased to $259,200 per month, sales units wili be 11,000 for January, 12,100 for February, agd 13,310 for March. The cost of its product will remain at $70 per unit, the sales staff will continue to earn a 10% commission, andthe 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? 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.)