Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

image text in transcribed

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 148 desk units (sales price of $1,250 ) and 88 chairs (sales price of $500 ). Reflects activity only related to the computer furniture segment. Sales: (148$1,250)+(88$500)=$229,000. Cost of goods sold: (148$750)+(88$250)=$133,000 Santana believes that sales will total 198 desks and 147 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 $17,040 for the quarter. Product costs per unit and amounts of all other expenses will not change. Required: 1. 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. 2. Do the proposed changes increase or decrease budgeted net income for the quarter? Complete this question by entering your answers in the tabs below. 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. 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 148 desk units (sales price of $1,250 ) and 88 chairs (sales price of $500 ). Reflects activity only related to the computer furniture segment. Sales: (148$1,250)+(88$500)=$229,000. Cost of goods sold: (148$750)+(88$250)=$133,000. Santana believes that sales will total 198 desks and 147 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 $17,040 for the quarter. Product costs per unit and amounts of all other expenses will not change. Required: 1. 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. 2. Do the proposed changes increase or decrease budgeted net income for the quarter? Complete this question by entering your answers in the tabs below. Do the proposed changes increase or decrease budgeted net income for the quarter

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing In The Public Sector Efficiency Economy And Program Results

Authors: James L. Savage, Felix Pomeranz, Alfred J. Cancellieri, Joseph B. Stevens

1st Edition

0882621238, 978-0882621234

More Books

Students also viewed these Accounting questions

Question

What are the fundamental elements of communication?

Answered: 1 week ago

Question

What is Accounting?

Answered: 1 week ago

Question

Define organisation chart

Answered: 1 week ago

Question

What are the advantages of planning ?

Answered: 1 week ago