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Santana Rey expects second - quarter 2 0 1 6 sales of her new line of computer furniture to be the same as the first
Santana Rey expects secondquarter sales of her new line of computer furniture to be the same as the first quarters sales reported below without any changes in strategy. Monthly sales averaged desk units sales price of and chairs sales price of BUSINESS SOLUTIONS Segment Income Statement For Quarter Ended March Sales Cost of goods sold Gross profit Expenses Sales commissions
Recommend whether Santana should implement the proposed changes. Hint Compare quarterly income for the proposed MayJune period to the quarterly income for the JanuaryFebruaryMarch period.
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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 threecolumn format, with one column for each month. Negative balances and should be indicated with minus sign.
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