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SP 20 Serial Problem Business Solutions (Algo) LO P3 Santana Rey expects second quarter 2022 net income of Business Solutions's line of computer furniture to
SP 20 Serial Problem Business Solutions (Algo) LO P3 Santana Rey expects second quarter 2022 net income of Business Solutions's line of computer furniture to be the same as the first quarter's net income (reported below) without any changes in strategy. Sales were 128 desk units (sales price of $1,250 ) and 68 chairs (sales price of $500 ). * Reflects activity only related to the computer furniture segment. Sales: (128$1,250)+(68$500)=$194,000 Cost of goods sold: (128$750)+(68$250)=$113,000 Santana believes that sales will total 168 desks and 117 chairs for the next quarter if selling prices are reduced to $1,150 for desks and $450 for chairs and advertising expenses are increased to $13,440 for the quarter. Product costs per unit and amounts of all other expenses will not change. 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. Do the proposed changes increase or decrease budgeted net income for the quarter? Do the proposed changes increase or decrease budgeted net income for the quarter
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