Santana Rey expects second quarter $2022$ net income of Business Solutions's line of computer furniture to be the same as the first quarter's net income $($reported below$)$ without any changes in strategy. Sales were $122$ desk units $($sales price of $$1,250)$ and $62$ chairs $($sales price of $$500).$

Reflects activity only related to the computer furniture segment.

$$ Sales: $(122$$$1,250)+(62$$$500)=$$$183,500.$

$$ Cost of goods sold: $(122$$$750)+(62$$$250)=$$$107,000.$

Santana believes that sales will total $159$ desks and $108$ chairs for the next quarter if selling prices are reduced to $$1,150$ for desks and $$450$ for chairs and advertising expenses are increased to $$12,360$ for the quarter. Product costs per unit and amounts of all other expenses will not change.

Required:

Prepare a budgeted income statement for the computer furniture segment for the quarter ended June $30,2022,$ that shows the results from implementing the proposed changes.

Do the proposed changes increase or decrease budgeted net income for the quarter?

Complete this question by entering your answers in the tabs below.