Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

saved Santana Rey expects second quarter 2022 net income of Business Solutions's line of computer furniture to be the same as the rst quaner's net

image text in transcribed
saved Santana Rey expects second quarter 2022 net income of Business Solutions's line of computer furniture to be the same as the rst quaner's net income (reported below) without any changes in strategy. Sales were 134 (sales price of $500) desk units (sales price of $1,250) and 74 Chi BUSINESS SOLUTIONSComputer Furniture Segment Segment Income Statement' For Quarter Ended March 31, 2922 Sales+ $ 294,599 Cost of goods sold: 119,eee Gross profit 7 7785,596n Selling, general, and administrative expenses Sales commissions (18%) $ 29,453 Advertising expenses 165469 General and administrative expenses 26,809 51,659 Net income 3 33,856 ' Reflects activity only related to the computer furniture segment, T Sales: (134 X $1,250) + (74 x $500) = $204,500. 1'. Cost of goods sold: (134 X $750) + (74 X $250) = $119,000. Santana believes that sales will total 177 desks and i126 Chairs tor t $450 for chairs and advertising expenses are increase he next quarter if selling prices are reduced to $1,150 for desks and expenses will not change. cl t0$14,520 for the quarter Product costs per unit and amounts of all other Required: 1. Prepare a budgeted income statement for the computer furniture segment for the quarter ended June 30, 2022, that shows the results from implementing the proposed changes 2. Do the proposed changes increase or decrease budgeted net income for the quarter? Complete this question by entering your answers in the tabs below. [ Required 1 Required 2 Prepare a budgeted income statement for the com the results from implementing the proposed chan puter furniture segment for the quarter ended June 30, 2022, that shows ges. E

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: James Jiambalvo

7th Edition

1119577721, 978-1119577720

More Books

Students also viewed these Accounting questions