serial problem chapter 20

geted baluce sheet as of March 31, 2020 Serial problem bei Chapter la comars through most of the book. If previous chapter deg M o ped the serial problem can begin ar this point SERIAL PRO Business Solution O Santinn Rey expects second- rter 2020 sales of Business Solutions's line of computer foniture De the summe as the first quarter's sales reported below) without any changes in strategy. Monthly sales orged 40 desk units (sales price of $1.250) and 20 chairs (sales price of $500). BUSINESS SOLUTIONS Computer Furniture Set Segment in care statement For Quarter Ended March 31, 2020 . $180.000 115.000 65,000 Sales! Cost of goods sold'........... Gross profit Expenses Sales commissions (10%)... Advertising expenses.... Other feed expenses..... Total expenses .......... Net income... 18.000 9.000 18,000 45,000 $ 20,000 Alexande Renects revenue and expense activity only related to the computer furniture sement Revenue! (120 desks x 51.250) + (60 chairs x 5500) 5150,000+ $30,000 = $180,000 Cost of goods sold: (120 desks x 5750) + (60 chairs x $250) + $10,000 $115.000 mana Rey believes that sales will increase each month for the next three months (April, 48 desks. - 32 desks. 35 chairs: June, 56 desks, 38 chairs) if selling prices are reduced to 1,150 ton Chapter 20 Master Budgets and Performance Planning desks and $450 for chairs and advertising expenses are increased by 10% and remain at that three months. The products variable cost will remain at $750 for desks and $250 for chairs. staff will continue to earn a 10% commission, the fixed manufacturing costs per month w $10,000, and other fixed expenses will remain at $6,000 per month remain at that level for all and $250 for chairs. The sales costs per month will remain at Required 1. Prepare budgeted income statements for the computer furniture the computer furniture segment for each of the months o April, May, and June that show the expected results from implementing the proposed changes three-column format, with one column for each month. 2. Use the budgeted income statements from part 1 to recommend whether Santana Rey should ment the proposed changes. the proposed changes. Use a sis