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 132 desk units (sales price of $1,250) and 72 chairs (sales price of $500) BUSINESS SOLUTIONS-Computer Furniture Segment Segment Income Statement For Quarter Ended March 31, 2022 Sales Cost of goods sold Gross profit 201,000 117,000 84,000 Selling, general, and administrative expenses Sales commissions (10%) Advertising expenses 20,100 10,200 General and administrative expenses 20,400 Net income *Reflects activity only related to the computer furniture segment Sales: (132 $1250) (72 $500) $201,000. # Cost of goods sold: (132 $750) + (72 $250) = $117,000. 50,700 $ 33,300 Santana believes that sales will total 174 desks and 123 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 $14,160 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. Required Required 1 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 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 132 desk units (sales price of $1,250) and 72 chairs (sales price of $500). BUSINESS SOLUTIONS-Computer Furniture Segment Segment Income Statement For Quarter Ended March 31, 2022 Sales Cost of goods sold Gross profit 201,000 117,000 84,000 Selling, general, and administrative expenses Sales commissions (10%) Advertising expenses. 20,100 10,200 General and administrative expenses 20,400 Net income Reflects activity only related to the computer furniture segment Sales: (132 $1,250) (72 $500) $201,000. Cost of goods sold: 132 $750) (72 $250) $117,000. 50,700 $ 33,300 Santana believes that sales will total 174 desks and 123 chairs for the next quarter if selling prices are reduced to $1150 for desks and $450 for chairs and advertising expenses are increased to $14,160 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. Required Required 1 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>