Serial Problem Business Solutions LO P3 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 42 desk units (sales price of $1,270) and 22 chairs (sales price of $520) Sales! BUSINESS SOLUTIONS-Computer Purniture Segment Segment Income Statement For Quarter Ended March 31, 2018 $194,340 Cost of goods sold' 145,440 Gross profit 48.900 Expenses Sales commissions (108) 19,434 Advertising expenses 9,600 other fixed expenses 18,600 Total expenses 47,634 Net income $ 1,266 Reflects revenue and expense activity only related to the computer furniture segment Revenue: (126 desks * $1,270) + (66 chairs * $520) = $160,020 + $34,320 = $194,340 Cost of goods sold: (126 desks * $770) + (66 chairs * $270) + $30,600 = $145,440 Santana Rey believes that sales will increase each month for the next three months (April, 50 desks, 34 chairs: May, 54 desks, 37 chairs, June, 58 desks, 40 chairs) if selling prices are reduced to $1,170 for desks and $470 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 $770 for desks and $270 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $10,200 and other fixed expenses will remain at $6,200 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. 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. BUSINESS SOLUTIONS-COMPUTER FURNITURE SEGMENT Budgeted Income Statements For Months of April, May, and June April May June Expenses Sales commissions Advertising Other fixed expenses Total expenses Net income (los)