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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

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 136 desk units (sales price of $1,250) and 76 chairs (sales price of $500). BUSINESS SOLUTIONS-Computer Furniture Segment Segment Income Statement* For Quarter Ended March 31, 2022 Salest Cost of goods sold Gross profit Selling, general, and administrative expenses Sales commissions (10%) Advertising expenses General and administrative expenses Net income $ 208,000 121,000 87,000 20,800 10,600 21,200 52,600 $ 34,400 * Reflects activity only related to the computer furniture segment. Sales: (136 $1,250) + (76 $500) = $208,000. + Cost of goods sold: (136 $750) + (76 $250) = $121,000. Santana believes that sales will total 180 desks and 129 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 $14,880 for the quarter. Product costs per unit and amounts of all other expenses will not change. Required 1 Required 2 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. BUSINESS SOLUTIONS-COMPUTER FURNITURE SEGMENT Budgeted Income Statements For Three Months Ended June 30, 2022 Selling, general and administrative expenses Net income 0 0 $ 0 Required 1 Required 2 Do the proposed changes increase or decrease budgeted net income for the quarter? Do the proposed changes increase or decrease budgeted net income for the quarter? < Required 1 Required 2 >

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