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Santana Rey expects second quarter 2018 sales of her new line of computer furniture to be the same as the first quarter's sales reported below without any changes in strategy, Monthly sales averaged 43 desk units sales price of $1290) and 24 chairs (sales price of $5401 BUSINESS SOLUTIONS-Computer Furniture Segnent Segment Income Statement For Quarter Ended March 31, 2018 5205,290 Cost of goods sola! 153.990 Gross profit $1,300 Expenses Sales comissions (105) Advertising expenses 30,200 Other depenses Total expenses Net Income $ 1,371 "Reflects revenue and expense activity only related to the computer furniture segment Revenue: 129 desks $1.290) + 72 chairs $540) = $166,410 - $38,880 - $205,290 1 Cost of goods sold: (129 desks - 790) + (72 chairs - 290) - 531200 - $153.990 Santana Rey believes that sales will increase each month for the next three months (April 1 desks 36 chairs; May. 55 desks, 39 chairs: June 59 desks. 42 chairs) i seling prices are reduced to $1190 for desks and $490 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 5790 for desks and 5290 for chairs. The sales staff will continue to earn a 10% commission, the foed manufacturing costs per month will remain at $10,400 and other fored expenses will remain at $6.400 per month 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 BUSINESS SOLUTIONS COMPUTER FURNITURE SEGMENT Budgeted Income Statements For Months of April, May, and June April June Expenses Sales commissions Advertising Othered expenses Net Income

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