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Adria Lopez expects second quarter 2014 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 44 desk units (sales price of $1,310) and 26 chairs (sales price of $560) SUCCESS SYSTEMS Segment Income Statement For Quarter Ended March 31, 2014 Salest Cost of goods sold $ 216,600 162,900 Gross profit Expenses Sales commissions (10%) Advertising expenses Other fixed expenses 53,700 21,660 10,800 19,800 Total expenses 52,260 Net income $1,440 * Reflects revenue and expense activity only related to the computer furniture segment. t Revenue: (132 desks x $1,310)+ (78 chairs x $560) $172,920 $43,680 - $216,600 t Cost of goods sold: (132 desksx $810) (78 chairs x $310)+ $31,800- $162,900 Adria Lopez believes that sales will increase each month for the next three months (April, 52 desks, 38 chairs; May, 56 desks, 41 chairs; June, 60 desks, 44 chairs) if selling prices are reduced to $1,210 for desks and $510 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 $810 for desks and $310 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $10,600 and other fixed expenses will remain at $6,600 per month