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 40 desk units (sales price of $1,250) and 20 chairs (sales price of $500) BUSINESS SOLUTIONS-Computer Furniture Segment Segment Income Statement* For Quarter Ended March 31, 2018 Salest Cost of goods sold Gross profit Expenses Sales commissions (10%) Advertising expenses Other fixed expenses Total expenses Net income $180,000 115,000 65,000 18,000 9,000 18,000 45,000 s 20,000 *Reflects revenue and expense activity only related to the computer furniture segment. t Revenue: (120 desks x $1,250) (60 chairs x $500) $150,000 $30,000 $180,000 Cost of goods sold: (120 desks $750) + (60 chars x $250) + $10,000-$115,000 Santana Rey believes that sales will increase each month for the next three months (April, 48 desks, 32 chairs, May, 52 desks, 35 chairs; June, 56 desks, 38 chairs) if selling prices are reduced to $1,150 for desks and $450 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 $750 for desks and $250 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $10,000, and other fixed expenses will remain at $6,000 per month