Santana Rey expects second-quarter 2018 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 46 desk units (sales price of $1,350) and 30 chairs (sales price of $600). BUSINESS SOLUTIONS-Computer Furniture Segment Segment Income Statement* For Quarter Ended March 31, 2018 Sales $240,300 Cost of goods sold Gross profit Expenses Sales commissions (101) Advertising expenses Other fixed expenses Total expenses Net income 159,800 80.500 24,030 12,000 21 000 57,030 23,470 Reflects revenue and expense activity only related to the computer furniture segment t Revenue: (138 desks $1,350)+(90 chairs $600) $186.300 $54,000 $240,300 Cost of goods sold: (138 desks x $850)+ (90 chairs $350)+ $33000 $159,800 Santana Rey believes that sales will increase each month for the next three months (April, 54 desks, 42 chairs: May, 58 desks, 45 chairs; June, 62 desks, 48 chairs) if selling prices are reduced to $1,260 for desks and $550 for chairs, and advertising expenses are increased by 10% and remain at that level for all three months. The products' variable cost will remain at $850 for desks and $350 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $11,000 and other fixed expenses will remain at $7,000 per month. Reni rad Required: 1. Prepare budgeted income statements for the computer furniture segment for each of the months of April, May, and June that show the expected results from implementing the proposed changes. Use a three-column format, with one column for each month. BUSINESS SOLUTIONS--COMPUTER FURNITURE SEGMENT Budgeted Income Statements For Months of April, May, and June April May June Expenses Sales commissions Advertising Other fixed expenses Total expenses Net income (loss) 2. Recommend whether Santana Rey should implement the proposed changes. O Should not implement the proposed changes O Should implement the proposed changes