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 $25,000. Round all calculations to the nearest dollar. Begin by preparing the budgeted income statement for Option 1. Shaner Company Budgeted Income Statement For the Quarter Ended March 31, 2018 Sales Revenue January February $ 25,000 $ 31,250 5,000 6,250 Cost of Goods Sold Gross Profit 25,000 20,000 7,400 S and A Expenses Operating Income 12,600 Income Tax Expense 2,520 $ 10,080 Net Income Shaner Company is considering two options. Shaner Company prepared the following budgeted income statement for the first quarter of 2018: B (Click the icon to view the budgeted income statement.) Requirements Requirement 1. Prepare budgeted income statements for both options, assuming both op dollar. 1. Prepare budgeted income statements for both options, assuming both options begin in January and January sales remain $25,000. Round all calculations to the nearest dollar. 2. Which option should Shaner choose? Explain your reasoning. Data Table Shaner Company Print Done Budgeted Income Statement For the Quarter Ended March 31, 2018 January February March Total $ 25,000 $ 91,000 36,000 $ 7,200 5,000 18,200 Net Sales Revenue (20% increase per month) Cost of Goods Sold (20% of sales) Gross Profit S and A Expenses ($3,000 + 12% of sales) Operating Income Income Tax Expense (20% of operating income) 30,000 $ 6,000 24,000 6,600 20,000 28,800 7,320 6,000 72,800 19.920 52.880 21,480 14.000 2,800 17,400 3,480 10,576 4,296 17,184 $ 11,200 $ 13,920 $ $ 42,304 Net Income Shaner Company prepared the following budgeted income statement for the first quarter of 2018: B (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. C Requirement 1. Prepare budgeted income statements for both options, assuming both options begin in January and January sales remain $25,000. Round all calculations to the nearest dollar. Data Table - X More Info 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 25% 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 Print Done Net Sales Revenue (20% increas Cost of Goods Sold (20% of sale Gross Profit S and A Expenses ($3,000 + 12% Operating Income Income Tax Expense (20% of operating income) 14,000 52,880 17,400 3,480 2,800 21,480 4,296 17,184 10,576 42,304 $ 11,200 13,920 $ Net Income Print Dono