10 10 points Sales BUSINESS SOLUTIONS-Computer Furniture Segment Segment Income Statement* For Quarter Ended March 31,...

Transcribed Image Text:

10 10 points Sales BUSINESS SOLUTIONS-Computer Furniture Segment Segment Income Statement* For Quarter Ended March 31, 2022 Cost of goods sold* Gross profit Selling, general, and administrative expenses Sales commissions (10%) Advertising expenses. General and administrative expenses eBook Net income $ 222,000 129,000 93,000 $ 22,200 11,400 22,800 56,400 $ 36,600 *Reflects activity only related to the computer furniture segment. Sales: (144x $1,250) + (84 x $500) = $222,000. Print + Cost of goods sold: (144 x $750) + (84 $250) = $129,000. o References Santana believes that sales will total 192 desks and 141 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 $16,320 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. 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 June 30, 2022 Selling, general and administrative expenses 0 0 Net income $ 0 < Required 1 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 2 > 10 10 points Sales BUSINESS SOLUTIONS-Computer Furniture Segment Segment Income Statement* For Quarter Ended March 31, 2022 Cost of goods sold* Gross profit Selling, general, and administrative expenses Sales commissions (10%) Advertising expenses. General and administrative expenses eBook Net income $ 222,000 129,000 93,000 $ 22,200 11,400 22,800 56,400 $ 36,600 *Reflects activity only related to the computer furniture segment. Sales: (144x $1,250) + (84 x $500) = $222,000. Print + Cost of goods sold: (144 x $750) + (84 $250) = $129,000. o References Santana believes that sales will total 192 desks and 141 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 $16,320 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. 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 June 30, 2022 Selling, general and administrative expenses 0 0 Net income $ 0 < Required 1 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 2 >