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 152 desk units (sales price of $1,250) and 92 chairs (sales price of $500). BUSINESS SOLUTIONS-Computer Furniture Segment Segment Income Statement* For Quarter Ended March 31, 2022 Sales+ Cost of goods sold Gross profit Selling, general, and administrative expenses Sales commissions (10%) Advertising expenses General and administrative expenses Net income $ 236,000 137,000 99,000 $ 23,600 12,200 24,400 60,200 $ 38,800 * Reflects activity only related to the computer furniture segment. Sales: (152 x $1,250) + (92 $500) = $236,000. + Cost of goods sold: (152 x $750) + (92 $250) = $137,000. Santana believes that sales will total 204 desks and 153 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 $17,760 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?