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1 Check my work Santana Rey expects second-quarter 2020 sales of Business Solutions's line of computer furniture to be the same as the first quarter's sales (reported below) without any changes in strategy, Monthly sales averaged 40 desk units (sales price of $1,220) and 17 chairs (sales price of $470). BUSINESS SOLUTIONS-Computer Furniture Segnent Segment Income Statements For Quarter Ended March 31, 2020 Salest $170,370 Cost of goods solo 126,720 Gross profit 43,658 Expenses Sales commissions (101) 17,037 Advertising expenses 8,100 Other fixed expenses 17.100 Total expenses 42,237 Net income $1,413 eBook Print eferences Reflects revenue and expense activity only related to the computer furniture segment Revenue: (120 desks * $1,220) + (51 chairs $470) = $146,400 + $23,970 - $170.370 Cost of goods sold: (120 desks * $720) + (51 chairs * $220) + $29,100 = $126,720 x Santana Rey believes that sales will increase each month for the next three months (April, 48 desks, 29 chairs, May, 52 desks, 32 chairs: June, 56 desks, 35 chairs) if selling prices are reduced to $1100 for desks and $420 for chairs and advertising expenses are increased by 10% and remain at that level for all three months. The products' variable cost will remain at $720 for desks and $220 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $9700 and other fixed expenses will remain at $5,700 per month Prev 1 of 2 Next > W Required: 1. Prepare budgeted income statements for the computer furniture segment for each of the months of April, May, and June that show the expected results from Implementing the proposed changes. Use a three-column format, with one column for each month. 2. Recommend whether Santana should implement the proposed changes. Hint Compare quarterly income for the proposed April-May-June period to the quarterly income for the January-February-March period, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare budgeted income statements for the computer furniture segment for each of the months of April, May, and June that show the expected results from implementing the proposed changes. Use a three-column format, with one column for each month. (Negative balances and should be indicated with minus sign.) June BUSINESS SOLUTIONS COMPUTER FURNITURE SEGMENT Budgeted Income Statements For Months of April, May, and June April May Sales Cost of goods sold Gross profit Prev 1 of 2 Next > Required 1 Required 2 Prepare budgeted income statements for the computer furniture segment for each of the months of April, May, and June that show the expected results from implementing the proposed changes. Use a three-column format, with one column for each month. (Negative balances and should be indicated with minus sign.) bok BUSINESS SOLUTIONS-COMPUTER FURNITURE SEGMENT Budgeted Income Statements For Months of April, May, and June April May nt June ances Sales Cost of goods sold Gross profit Expenses Sales commissions Advertising Other fixed expenses Total expenses Net Income (loss) Boguced Required 2 > WO proposed April-May-June period to the quarterly income for the January February March period. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Recommend whether Santana Rey should implement the proposed changes. Recommend whether Santana Rey should implement the proposed changes,

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