Three years ago, Nancy Jackson and her brother-in-law Daniel White opened Kingbird Department Store. For the first 2 years, business was good, but the following condensed income statement results for 2022 were disappointins KINGBIRD DEPARTMENT STORE Income Statement For the Year Ended December 31, 2022 Nat sales $920,000 Cost of goods sold 656,000 Gross pront 164000 Operating expenses Salting expenses Administrative expenses $115.000 23.000 139,000 Net income $26.000 Nancy believe the problem is in the relatively low gross profit rate of 2016. Dania beaves the problem is that operating expenses are too high. Nancy thinks the gross profit rate can be improved by maloing two changes. (1) Increase average selling prices by 15%: this increase is expected to lower sales volume so that total sales dollars will increase only 456. 2) Buy merchandise in larger quantities and take all purchase discounts. These changes to purchasing practices are expected to increase the gross proftrate from its currentrate of 20% to a new rate of 25%. Nancy does not anticipate that these changes will have any effect on operating expenses. Daniel thinks expenses can be cut by making these two changes. (1) Out 2022 sales salaries of $69.000 in half and give sales personnel a commission of 2% of net sales. 2 Reduce store deliveries to one day per week rather than twice a week this charse wil redues 2022 delivery expenses of S46,000 by 409. Daniel facts that these changes will not have any effect on net sales. Nancy and Danielcome to you for help in deciding the best way to improve net income answer the following (all Prepare a condensed income statement for 2023 assuming Nancy's changes are implemented KINGBIRD DEPARTMENT STORE Projected Income Statement $ S V s