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Santana Rey expects second-quarter 2016 sales of her new line of computer furniture to be the same as the first quarter's sales (reported below) without
Santana Rey expects second-quarter 2016 sales of her new line of computer furniture to be the same as the first quarter's sales (reported below) without any changes in strategy. Monthly sales averaged 40 desk units (sales price of $1,250) and 20 chairs (sales price of $500) BUSINESS SOLUTIONS Segment Income Statement For Quarter Ended March 31,2016 Gross profit Sales commissions (10%) Other fixed expenses 18.000 9,000 . . . 45.000 lotal expenses.... related to the computer furniture segment Reflects revenue and expense activity only Revenue: (120 desks $1,250) + (60 chairs S500-$150,000 + $30,000 = $180,000 : Cost of goods sold: (120 desks $750) + (60 chairs S250) + $10,000-$115,000 Santana Rey believes that sales will increase each month for the next three
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