Ches 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 40 desk units (sales price of $1,250) and 20 chairs (sales price of $500). BUSINESS SOLUTIONS Computer Furniture Segment Segment Income Statement For Quarter Ended March 31, 2018 Sales $180,000 Cost of goods soldt 135,800 Gross profit 45,000 Expenses Sales commissions (10%) 18,000 Advertising expenses 9,000 other fixed expenses 18,000 Total expenses 45,000 Net income 0 * Reflects revenue and expense activity only related to the computer furniture segment. t Revenue: (120 desks * $1,250) + (60 chairs $500) - $150,000 $30,000 - $180,000 + Cost of goods sold: (120 desks * $750) + (60 chairs $250) + $30,000 - $135,000 Santana Rey believes that sales will increase each month for the next three months (April, 48 desks, 32 chairs: May, 52 desks, 35 chairs; June, 56 desks, 38 chairs) if selling prices are reduced to $1,150 for desks and $450 for chairs, and advertising expenses are inceaned namin til for all the math. The nendeninin cantonmain +75 for dere Anden in Chec ucascu wy IVO HIU ICH at udt Venue HUF US. THE PIQUULIS VdidUIE LUDI WHITE dil di PIOU TUI VERS HOU TU chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $10,000, and other fixed expenses will remain at $6,000 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 May June Expenses Sales commissions Advertising Other fixed expenses Total expenses Net income (oss) Expenses Sales commissions Advertising Other fixed expenses Total expenses Net income (loss) 2. Recommend whether Santana Rey should implement the proposed changes. Should implement the proposed changes Should not implement the proposed changes