Problem 7.3A (Algo) Manufacturing: Preparation and analysis of budgeted income statements LO p3 Merline Manufacturing makes its product Jor $60 per unit and sells it for $142 per unit. The sales staff recelves a commisulon of $0% of sales. It December income statemem follows. Mansgement expects December's results to be repeated in January, February, and Merch without any changes in strategy. Mansgement however, has an alternatse plan. It believes that if the unit seling price is reduced to $127 per unt and odvertishg is incressed to $257600 per month, sales unlts will be 11000 for January, 12.900 for Februlry. and 13,310 for March. The cost of its product wal remain at $60 per unit, the sales staff wal continue to eam o 10s commission, and the remoining expenses wall stay the some. Required: 1. Prepare budgeled income ststements for each of the months of Januafy. February. and March that show refuts from implementing the proposed plan 2. For the proposed plen, is income in March budgeled to be Nigher then income in December? Complete this question by entering your answers in the tabs below. Prepare budgeted income statements for each of the months of Janumry, February, and March that shoiv results from implementing the proposed plan, (Enter your final answers in whole dollars.) Problem 7-3A (Algo) Manufacturing: Preparation and analysis of budgeted income statements LO P3 Merline Manufacturing makes its product for $60 per unit and sells it for $142 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 an alternative plan. It believes that if the unit selling price is reduced to $127 per unit and advertising is increased to $257,600 per month, sales units will be 11,000 for January, 12,100 for February, and 13,310 for March, The cost of its product will remain at $60 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? 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