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? 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. Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $164,380 budgeted expenses include $105,640 in variable expenses for desks and $20,740 in variable expenses for chairs, as well as $38,000 of fixed expenses. Actual fixed expenses total $39,900. Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) FURY produces and sells skateboards. Its contribution margin income statement follows. A potential customer offers to buy 11,600 units for $58.00 each. These sales would not affect the company's sales through its normal channels. Details of the special offer follow. - Variable costs per unit would not change. - Accepting the offer would require incremental fixed overhead costs of $11,600. - Accepting the offer would require incremental fixed general and administrative costs of $17,400. Required: 1. Compute income or loss from the special offer. 2. Should the company accept or reject the special offer? Complete this question by entering your answers in the tabs below. Compute income or loss from the special offer. (Round your "Per Unit" answers to 2 decimal places.) Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $410,400 and to have a six-year life and no salvage value. The equipment is expected to generate income of $16,639 and net cash flow of $91,487 in each year of its six-year life. Santana requires an 10% return on all investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1 ) (Use appropriate factor(s) from the tables provided.) (Negative net present values should be indicated with a minus sign. Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole number.) Required: 1-a. Compute the payback period for this equipment. 1-b. Compute the net present value for this equipment. 1-c. Compute internal rate of return for this equipment. 2. If Santana requires investments to have payback periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 10% internal rate of return, should she invest in this equipment? Required: 1-a. Compute the payback period for this equipment. 1-b. Compute the net present value for this equipment. 1-c. Compute internal rate of return for this equipment. 2. If Santana requires investments to have payback periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 10% internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Compute the payback period for this equipment. Compute internal rate of return for this equipment. 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? 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. Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $164,380 budgeted expenses include $105,640 in variable expenses for desks and $20,740 in variable expenses for chairs, as well as $38,000 of fixed expenses. Actual fixed expenses total $39,900. Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) FURY produces and sells skateboards. Its contribution margin income statement follows. A potential customer offers to buy 11,600 units for $58.00 each. These sales would not affect the company's sales through its normal channels. Details of the special offer follow. - Variable costs per unit would not change. - Accepting the offer would require incremental fixed overhead costs of $11,600. - Accepting the offer would require incremental fixed general and administrative costs of $17,400. Required: 1. Compute income or loss from the special offer. 2. Should the company accept or reject the special offer? Complete this question by entering your answers in the tabs below. Compute income or loss from the special offer. (Round your "Per Unit" answers to 2 decimal places.) Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $410,400 and to have a six-year life and no salvage value. The equipment is expected to generate income of $16,639 and net cash flow of $91,487 in each year of its six-year life. Santana requires an 10% return on all investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1 ) (Use appropriate factor(s) from the tables provided.) (Negative net present values should be indicated with a minus sign. Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole number.) Required: 1-a. Compute the payback period for this equipment. 1-b. Compute the net present value for this equipment. 1-c. Compute internal rate of return for this equipment. 2. If Santana requires investments to have payback periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 10% internal rate of return, should she invest in this equipment? Required: 1-a. Compute the payback period for this equipment. 1-b. Compute the net present value for this equipment. 1-c. Compute internal rate of return for this equipment. 2. If Santana requires investments to have payback periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 10% internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Compute the payback period for this equipment. Compute internal rate of return for this equipment