X i Requirements 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 Soya choose? Explain your reasoning. Print Done - X Data Table Soya Company Budgeted Income Statement em For the Quarter Ended March 31, 2018 March Total er February January 36,000 $ 91,000 25,000 $ 30,000 $ Net Sales Revenue (20% increase per month) an 6,000 18,200 5,000 Cost of Goods Sold (20% of sales) St 24,000 28,800 72,800 20,000 Gross Profit 19,920 7,320 6,000 6,600 S and A Expenses ($3,000 12% of sales) 17,400 21,480 52,880 14,000 Operating Income 10,576 2,800 3,480 4,296 Income Tax Expense (20% of operating income) 17,184 $ 42,304 $ 11,200 $ 13,920 $ Net Income Print Done Done Prini X i 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 Done Requirement 1. Prepare budgeted income statements for both options, assuming both Begin by preparing the budgeted income statement for Option 1. Soya Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income Income Tax Expense Net Income