Problem 22-3A (Algo) Manufacturing: Preparation and analysis of budgeted income statements LO P3 Merline Manufacturing makes its product for $70 per unit and sells it for $132 per unit. The sales staff receives a commission of 105 of sales its December income statement follows. Management expects December's resulis to be repeated in January, February. and March without any changes in strategy Management, however, has an altemative plan it believes that if the unit selling price is reduced to $117 per unit and advertising is increased to $234,600 per month, sales units will be 11,000 for Janwary, 12 too for February. and 13,310 for March. The cost of its product will remain at 570 per unit, the sales staft will continue to eam a 10 s commission, and the remainng expenses will stay the same Required: 1. Prepare bubgeted income statements for each of the months of ,lanuary. Februaly, and March that show results from implementing the proposed plan 2. For the proposed plan, is income in Mareh budgeted to be higher than income in December? Complete this question by enterimg your answers in the tabs below. Prepare budqeted income stateibents for each of the months of anusry, february, and March that show results from implementing the propored plan Prepare budgeted income statements for each of the months of Jamuary, February, and March that show results from implementing the propoted plan. Wote: Enter your final answers in whole dollars. 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 $117 per unit and advertising is increased to $234,600 per month, sales units will be 11,000 for January, 12100 for February, and 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, 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 Decemthr? Complete this question by entering your answers in the tabs below. For the proposed plan, is income in March budgeted to be higher than income in December? Problem 22-3A (Algo) Manufacturing: Preparation and analysis of budgeted income statements LO P3 Merline Manufacturing makes its product for $70 per unit and sells it for $132 per unit. The sales staff receives a commission of 105 of sales its December income statement follows. Management expects December's resulis to be repeated in January, February. and March without any changes in strategy Management, however, has an altemative plan it believes that if the unit selling price is reduced to $117 per unit and advertising is increased to $234,600 per month, sales units will be 11,000 for Janwary, 12 too for February. and 13,310 for March. The cost of its product will remain at 570 per unit, the sales staft will continue to eam a 10 s commission, and the remainng expenses will stay the same Required: 1. Prepare bubgeted income statements for each of the months of ,lanuary. Februaly, and March that show results from implementing the proposed plan 2. For the proposed plan, is income in Mareh budgeted to be higher than income in December? Complete this question by enterimg your answers in the tabs below. Prepare budqeted income stateibents for each of the months of anusry, february, and March that show results from implementing the propored plan Prepare budgeted income statements for each of the months of Jamuary, February, and March that show results from implementing the propoted plan. Wote: Enter your final answers in whole dollars. 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 $117 per unit and advertising is increased to $234,600 per month, sales units will be 11,000 for January, 12100 for February, and 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, 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 Decemthr? Complete this question by entering your answers in the tabs below. For the proposed plan, is income in March budgeted to be higher than income in December