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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

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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 45 desk units (sales price of $1,340) and 29 chairs (sales price of $590). SINESS SOLUTIONS-Computer Furniture Segment Segnent Income Statement* For Quarter Ended March 31, 2018 $232,230 153, 880 -78,350 Sales cost of goods soldt Gross profit Expenses Sales commissions (108) Advertising expenses Other tixed expenses Total expenses Net income ces 23,223 11,700 20,700 55,623 S 22,727 Reflects revenue and expense activity only related to the computer furniture segment t Revenue: (135 desks-$1,340) + (87 chairs-$590)-$180,900 + $51.330-$232,230 $840) + (87 chairs $340) + $10.900-$153.880 t cost of goods sold: (135 deskS Santana Rey believes that sales will increase each month for the next three months (April, 53 desks, 41 chairs; May, 57 desks, 44 chairs; June, 61 desks, 47 chairs) if selling prices are reduced to $1,250 for desks and $540 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 S840 for desks and $340 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $10.900 and Santana Rey believes that sales will increase each month for the next three months (April, 53 desks, 41 chairs; May, 57 desks, 44 chairs; June, 61 desks, 47 chairs) if selling prices are reduced to $1,250 for desks and $540 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 $840 for desks and $340 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $10,900 and other fixed expenses will remain at $6,900 per month. 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 May April Sales Cost of goods sold Gross proft Expenses Sales commissions Other fixed expenses Next Prew

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