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SP 20 Serial Problem Business Solutions (Static) LO P3 Santana Rey expects second quarter 2022 net income of Business Solutions's line of computer furniture to

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SP 20 Serial Problem Business Solutions (Static) 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 120 desk units (sales price of $1,250) and 60 chairs (sales price of $500) BUSINESS SOLUTIONS-Computer Furniture Segment Segment Income Statement For Quarter Ended March 31, 2922 Salest $ 189, cee Cost of goods sold 105,000 Gross profit 75,000 Selling. general, and administrative expenses Sales commissions (10%) $ 18,000 Advertising expenses 9,000 General and administrative expenses 18.000 45,000 Net income $ 30,000 "Reflects activity only related to the computer furniture segment. Sales: (120 desks - $1.250) + (60 chairs - $500) - $180,000 cost of goods sold: (120 desks * $750) + (60 chairs * $250) - $105,000 Santana believes that sales will total 156 desks and 105 chairs for the next quarter itselling prices are reduced to $1,150 for desks and $450 for chairs and advertising expenses are increased to $12,000 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? Required 1 Required 2 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. BUSINESS SOLUTIONS COMPUTER FURNITURE SEGMENT Budgeted Income Statements For Three Months Ended dune 30, 2022 Selling general and administrative expenses Net income Required 2 > Complete this question by entering your answers in the tabs below. 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? (Required 1 Required

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