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 124 desk units (sales price of $1,250) and 64 chairs (sales price of $500) BUSINESS SOLUTIONS-Computer Furniture Segment Segment Income Statement For Quarter Ended March 31, 2022 Sales $ 187,000 Cont of goods solat 109,000 Gross profit 78,000 Selling, general, and administrative expenses Sales commissions (101) $ 18,700 Advertising expenses 9.400 Ceneral and administrative expenses 18,000 46,900 Net Income $31.100 *Reflects activity only related to the computer furniture segment Sales: (124* $1.250) + (64 * $500) = $187,000 Cost of goods sold: (124 * $750) + (64 * $250) $109,000. Santana belleves that sales will total 162 desks and 111 chairs for the next quarter if selling prices are reduced to $1,150 for desks and $450 for chalrs and advertising expenses are increased to $12,720 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? BUSINESS SOLUTIONS-COMPUTER FURNITURE SEGMENT Budgeted Income Statements For Three Months Ended June 30, 2022 Selling, general and administrative expenses Net income Required 1 Required 2 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