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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

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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 (reported below) without any changes in strategy. Sales were 142 desk units (sales price of $1,250) and 82 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 Selling, general, and administrative expenses Sales commissions (109) $ 21,850 Advertising expenses 11,200 General and administrative expenses 22,400 Net income $ 218,500 127,000 91,500 55,450 $ 36,050 * Reflects activity only related to the computer furniture segment. Sales: (142 * $1,250) + (82 * $500) = $218,500. Cost of goods sold: (142 * $750) + (82 * $250) = $127.000. Santana believes that sales will total 189 desks and 138 chairs for the next quarter If selling prices are reduced to $1,150 for desks and $450 for chalrs and advertising expenses are increased to $15,960 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 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 0 Selling, general and administrative expenses 0 Net income S 0 Complete this question by entering your answers in the tabs below. 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?

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