Shaner Company prepared the following budgeted income statement for the first quarter of 2018: (Click the icon to view the budgeted income statement.) Shaner Company is considering two options. (Click the icon to view the options.) Read the requirements Requirement 1. Prepare budgeted income statements for both options, assuming both options begin in January and January sales remain $15,000. Round all calculations to the nearest dollar. Begin by preparing the budgeted income statement for Option 1 Data Table - X Shaner Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January Sales Revenue Cost of Goods Sold Gross Profit Shaner Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February (20% increase per month) $ 15,000 $ 18,000 $ (60% of sales) 9,000 10,800 March Total Net Sales Revenue S and A Expenses Operating Income Income Tax Expense 21,600 $ 12,960 54,600 32,760 Cost of Goods Sold Gross Profit 6,000 7,200 8.640 21,840 Net Income 3,700 4,000 4,360 12,060 S and A Expenses ($2,200 + 10% of sales) Operating Income Income Tax Expense (20% of operating income) 2,300 3,200 4,280 9,780 More Info - X 460 1,840 $ 640 2,560 $ 856 3,424 $ 1,956 7,824 Net Income $ Print Done Option 1 is to increase advertising by $1,400 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 will provide a better product at the same sales price. The marketing manager projects either option will result in sales increases of 25% per month rather than 20%. Print Done Enter any number in the edit fields and then click Check Answer. 8 parts Clear All remaining