Wayne Frederick expects second-quarter 2021 sales of Bison Business Solutions's line of computer furniture to be the same as the first

quarter's sales (reported below) without any changes In strategy. Monthly sales averaged 42 desk units (sales price of $1,280) and 23

chairs (sales price of $530).

BUSINESS SOLUTIONS-Computer Furniture

Segment

Segment Income Statement*

For Quarter Ended March 31,

2021

Saleg!

$197,850

Cost of good sold*

Gross profit

Expenses

Sales commisgiong(100)

Advertising expenses

Other fixed expenses

Total expenses

148,500

49,350

Det

income

19,785

900

18,900

48,585

765

Reflects revenue and expense activity only related to the computer furniture segment.

+ Revenue: (126 desks x $1,280) + (69 chairs * $530) = $161,280 + $36,570 = $197,850

Cost of goods sold: (126 desks x $780) + (69 chairs $280) + $30,900 = $148,500

Wayne Frederick believes that sales will Increase each month for the next three months (April, 50 desks, 35 chairs; May, 54 desks, 38

chairs; June, 58 desks, 41 chairs) If selling prices are reduced to $1,180 for desks and $480 for chairs and advertising expenses are

Increased by 10% and remain at that level for all three months. The products' variable cost will remain at $780 for desks and $280 for

chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $10,300 and

other fixed expenses will remain at $6,300 per month.

Required:

1. Prepare budgeted income statements for the computer furniture segment for each of the months of April, May, and June that show

0 Wayne Frederick expects second-quarter 2021 sales of Bison Business Solutions's line of computer furniture to be the same as the first quarter's sales (reported below) without any changes in strategy. Monthly sales averaged 42 desk units (sales price of $1,280) and 23 chairs (sales price of $530) BUSINESS SOLUTIONS-Computer Furniture Segment Segment Income Statement Tot Quarter Ended March 31, 2021 00:36:31 Sales $197,850 Cost of goods sold 140,500 Gross profit 49,350 Expenses Sales commissions (104) 19,705 Advertising expenses 9,900 other fixed expenses Total expenses 18,900 40.505 765 Set income Reflects revenue and expense activity only related to the computer furniture segment 1 Revenue (126 desks $1,280) (69 chairs $530) $161,280 $36,570 = $197,850 + Cost of goods sold: (126 desks $780) (69 chairs $280) $30,000-$148,500 Wayne Frederick believes that sales will increase each month for the next three months (April, 50 desks, 35 chairs; May, 54 desks, 38 chairs, June, 58 desks, 41 chairs) if selling prices are reduced to $1,180 for desks and $480 for chairs and advertising expenses are increased by 10% and remain at that level for all three months. The products' variable cost will remain at $780 for desks and $280 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $10,300 and other fixed expenses will remain at $6,300 per month Required: 1. Prepare budgeted income statements for the computer furniture segment for each of the months of April, May, and June that show the expected results from implementing the proposed changes. Use a three-column format, with one column for each month 2. Recommend whether Wayne Frederick should implement the proposed changes Required: 1. Prepare budgeted income statements for the computer furniture segment for each of the months of April, May, and June that show the expected results from implementing the proposed changes. Use a three-column format, with one column for each month. 2. Recommend whether Wayne Frederick should implement the proposed changes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare budgeted income statements for the computer furniture segment for each of the months of April, May, and June that show the expected results from implementing the proposed changes. Use a three-column format, with one column for each month. (Negative balances and should be indicated with minus sign.) BUSINESS SOLUTIONS-COMPUTER FURNITURE SEGMENT Budgeted Income Statements For Months of April, May, and June April June Expenses Sales commissions Advertising Other fixed expenses Total expenses Net income (loss) 0 0 May 0 0 0 0 0 0 0 bled: Exam 2 Seved Gross profit 49,350 Expenses Sales commissions (108) 19,705 Advertising expennen 9,900 Other fixed expenses. 18,900 48,585 Total expenses Net income $ 765 *Reflects revenue and expense activity only related to the computer furniture segment. Revenue: (126 desks $1,280) + (69 chairs $530) = $161,280+ $36,570 $197,850 # Cost of goods sold: (126 desks $780)+ (69 chairs $280)+ $30,900 $148,500 X Wayne Frederick believes that sales will increase each month for the next three months (April, 50 desks, 35 chairs; May, 54 desks, 38 chairs; June, 58 desks, 41 chairs) if selling prices are reduced to $1,180 for desks and $480 for chairs and advertising expenses are increased by 10% and remain at that level for all three months. The products' variable cost will remain at $780 for desks and $280 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $10,300 and other fixed expenses will remain at $6,300 per month. Required: 1. Prepare budgeted income statements for the computer furniture segment for each of the months of April, May, and June that show the expected results from implementing the proposed changes. Use a three-column format, with one column for each month, 2. Recommend whether Wayne Frederick should implement the proposed changes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Recommend whether Santana Rey should implement the proposed changes. Recommend whether Santana Rey should implement the proposed changes