Question Help ambrell Company prepared the following budgeted income statement for the first quarter of 2016: Click the icon to view the budgeted income statement.) ambrell is considering two options. Option 1 is to increase advertising by $1,100 per month. Option 2 is to use better quality materials in the manufacturing process. The better materials will increase the cost of goods sold to 65% but wil provide a be Foduct at the same sales price. The marketing manager projects either option will result in sales increases of 25% per month rather than 20% Lead the requirements i Data Table - Requirement 1. Prepare budgeted income statements for both options assuming January sales remain $15,000 Begin by preparing the budgeted income statement for Option 1. (Round all amounts to the nearest whole number.) Gambrell Company Budgeted Income Statement For the Quarter Ended March 31, 2016 January February March Sales Revenue $ 15,000 $ 18.750 Cost of Goods Sold 9,000 11,250 Gross Profit 6,000 7,500 S and A Expenses 4,800 5,175 Operating Income 1.200 2,325 Income Tax Expense 240 465 $ 960 $ 1,860 Net Income Total March 21,600 $ 12.960 54,600 32,760 Gambrell Company Budgeted Income Statement For the Quarter Ended March 31, 2016 January February Sales Revenue (2056 increase per month) S 15,000 S 18,000 3 Cost of Goods Sold (60% of sales) 9,000 10.800 Gross Prolit 6,000 7,200 S and A Expenses (52,200 + 10% of sales) 3,700 4000 Operating Income 3.200 Income Tax Expenso (20% of operating income) 400 540 S 1,840 $ 2,560 S Net Incorno 21,840 8,640 4,360 2.300 4.280 12.060 9.780 1,956 7,824 858 3,424 S i Requirements Print Done 1. Prepare budgeted income statements for both options assurring January sales remain $15.000. 2. Which option should Gambrell choose? Explain your reasoning