Santana Rey expects second quarter 2022 net income of Business Solutionss line of computer furniture to be the same as the first quarters net income (reported below) without any changes in strategy. Sales were 130 desk units (sales price of $1,250) and 70 chairs (sales price of $500).

BUSINESS SOLUTIONSComputer Furniture Segment
Segment Income Statement*
For Quarter Ended March 31, 2022
Sales		$ 197,500
Cost of goods sold		115,000
Gross profit		82,500
Selling, general, and administrative expenses
Sales commissions (10%)	$ 19,750
Advertising expenses	10,000
General and administrative expenses	20,000	49,750
Net income		$ 32,750

* Reflects activity only related to the computer furniture segment. Sales: (130 $1,250) + (70 $500) = $197,500. Cost of goods sold: (130 $750) + (70 $250) = $115,000. Santana believes that sales will total 171 desks and 120 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 $13,800 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?