Santana Rey expects second quarter 2020 sales of Business Solutions's line of computer furniture to be the same as the first quarters sales reported below) without any changes in strategy Monthly sales averaged 46 desk units (sales price of $1,350) and 30 choirs sales price of $600) BUSINESS SOLUTION.com Furniture Segment Segment Tnoon statement Tor Outer Kred March 31, 2020 Bales $240,300 Coat of goods sala 101.000 drou proti 38,500 Expenses Sales commissions 11011 26.010 Advertising expenses 12,000 other ined expenses 223.000 Total expenses 57.000 Net Income 1,470 * Reflects revenue and expense activity only related to the computer furniture segment Revenue (138 desks $1,350) (90 chairs $600) $186,300 $54,000 $240,300 Cost of goods sold: (138 deska $850) (90 chairs $350) $33,000 $181,800 Santana Rey believes that soles will increase each month for the next three months (April, 54 desks 42 chairs: May, 58 desks, 45 chairs: June 62 desks, 48 chairs) if selling prices are reduced to $1260 for desks and $550 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 $850 for desks and 5350 for chairs. The sales staff will continue to com a 10% commission, the fixed manufacturing costs per month will remain of $11.000 and other fixed expenses will remain at $7,000 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 2. Recommend whether Santana should implement the proposed changes. Hint Compare quarterly income for the proposed April May June period to the quarterly income for the January February March period. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 (Negative balances and should be indicated with minus sign.) June 0 BUSINESS SOLUTIONS-COMPUTER FURNITURE SEGMENT Budgeted Income Statements For Months of April, May, and June April May Sales 91,140 Cost of goods sold Gross profit 91.140 0 Expenses Sales commissions Advertising 0 Other fixed expenses 0 Total expenses 0 0 Not income (loss) 0 0 0 Beguar Required 2 >