Santana Rey expects second-quarter 2020 sales of Business Solutions's line of computer furniture to be the same as the first quarter's sales (reported below) without any changes in strategy. Monthly sales averaged 38 desk units (sales price of $1,180) and 13 chairs (sales price of $430). BUSINESS SOLUTIONS-Computer Furniture Segment Segment Income Statement For Quarter Ended March 31, 2020 Sales $ 151,290 Cost of goods sold 112,440 Gross profit 38,850 Expenses Sales commissions (10%) 15,129 Advertising expenses 6,900 Other fixed expenses 15,900 Total expenses 37,929 Net income $ 921 * Reflects revenue and expense activity only related to the computer furniture segment. Revenue: (114 desks * $1,180) + (39 chairs * $430) = $134,520 + $16,770 = $151,290 Cost of goods sold: (114 desks * $680) + (39 chairs * $180) + $ 27,900 = $112,440 Santana Rey believes that sales will increase each month for the next three months (April, 46 desks, 25 chairs; May, 50 desks, 28 chairs, June, 54 desks, 31 chairs) if selling prices are reduced to $1,050 for desks and $380 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 $680 for desks and $180 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $9,300 and other fixed expenses will remain at $5,300 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. 2. Recommend whether Santana Rey should implement the proposed changes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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. (Negative balances and should be indicated with minus sign.) BUSINESS SOLUTIONS-COMPUTER FURNITURE SEGMENT Budgeted Income Statements For Months of April, May, and June April May June Cash Cost of goods sold Gross profit Expenses Sales commissions Advertising Other fixed expenses Total expenses Net income (loss)