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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 43 desk units (sales price of $1290) and 24 chairs (sales price of $540) BUSINESS SOLUTIONS Computer Furniture Segment Segment Income Statement For Quarter Ended March 31, 2018 Sales' $285,290 Cost of goods sold' 133,190 Gross profit 72,100 Expenses Sales commissions (lex) 20,529 Advertising expenses 10.200 Other Fixed expenses Total expenses Net income * Reflects revenue and expense activity only related to the computer furniture segment. Revenue: 129 desks $1.290) (72 chairs $540) = $166.410 - $38,880 - $205.290 # Cost of goods sold: (129 desks $790) (72 chairs $290) - $31,200 $133,190 Santana Rey believes that sales will increase each month for the next three months April, 51 desks. 36 chairs: May, 55 desks, 39 chairs. June. 59 desks. 42 chairs) if selling prices are reduced to $1190 for desks and $490 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 $790 for desks and 5290 for chairs. The sales staff will continue to earn a 10% commission, the fored manufacturing costs per month will remain at $10,400 and other fixed expenses will remain at $6.400 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

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