Sales Cost of goods sold Gross profit MERLINE MANUFACTURING Income Statement For Month Ended December 31 Selling, general, and administrative expenses Sales commissions (108) Advertising office rent $ 147,000 234,000 $ 1,470,000 550,000 920,000 Administrative salaries Depreciation-office equipment office Insurance Net incons 25,700 48,500 58,500 13,700 527,400 $ 392,600 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 $132 per unit and advertising is Increased to $269,100 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 $55 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. Required 1 Required 2 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.) Budgeted sales (in dolars) Selling, general, and administrative expenses Sales commissions Advertising Office rent Administrative salaries Depreciation-Office equipment Office insurance Total expense MERLINE MANUFACTURING Budgeted Sales January February March MERLINE MANUFACTURING Budgeted Income Statement January February March