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 les Cost of goods sold Gross profit Expenses Sales commissions Advertising Other fixed expenses Total expenses Net income (loss) 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 41 desk units (sales price of $1,240) and 19 chairs (sales price of $490) BUSINESS SOLUTIONS-Computer Furniture Segment Segment Income Statement* For Quarter Ended March 31, 2018 $180,450 114,600 65, 850 Sales Cost of goods sold Gross profit Expenses Sales commissions (10%) Advertising expenses other fixed expenses Total expenses Net income 18,045 8,700 17,700 44,445 21,405 Reflects revenue and expense activity only related to the computer furniture segment. t Revenue: (123 desks x $1,240)(57 chairs x $490) $152,520 + $27,930 $180,450 $740) + (57 chairs $240) + $29,700-$114,600 Cost of goods sold: (123 deskS Santana Rey believes that sales will increase each month for the next three months (April, 49 desks, 31 chairs; May, 53 desks, 34 chairs; June, 57 desks, 37 chairs) if selling prices are reduced to $1,130 for desks and $440 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 $740 for desks and $240 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $9,900 and other fixed expenses will remain at $5,900 per month