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 44 desk units (sales price of $1,300) and 25 chairs (sales price of $550) BUSINESS SOLUTIONS-Computer Furniture Segrent Segrent Income Statement For Quarter Ended March 31, 2020 Sales! $212,850 Cost of goods solat 159,600 Gross profit 53,250 Expenses Sales comissions (10%) 21,285 Advertising expenses 10,500 Other fixed expenses 19,500 Total expenses 51 285 Net Income $ 1,965 Reflects revenue and expense activity only related to the computer furniture segment Revenue: (132 desks * $1300) + (75 chairs $550) - $171,600 + $41250 - $212,350 Cost of goods sold: (132 desks - $800) + (75 chairs $3001 - $31,500 - $159,600 Santana Rey believes that sales will increase each month for the next three months (April, 52 desks, 37 chairs, May. 56 desks, 40 chairs. June 60 desks. 43 chairs) selling prices are reduced to $1.200 for desks and $500 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 5800 for desks and $300 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $10,500 and other fored expenses will remain at $6.500 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 should implement the proposed changes. Hint Compare quarterly income for the proposed April May-June period to the quarterly income for the January February March period Complete this question by entering your answers in the tabs below. Required Required 2 Prev 1 of 1 Next 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 should implement the proposed changes. Hint Compare quarterly income for the proposed April- May-June period to the quarterly income for the January-February-March period. 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 sion.) June BUSINESS SOLUTIONS COMPUTER FURNITURE SEGMENT Budgeted Income Statements For Months of April, May and June April May Advertising Other fixed expenses Grosso 0 0 Expenses Sales Commons Advertising 0 Other fored 0 Total expenses Net income foss) Required 2 > Required 1 Required 2 Recommend whether Santana Rey should implement the proposed changes. Recommend whether Santana Rey should implement the proposed charges