Question: Got everything wrong first time. If can please also explain solutions, thank you. Santana Rey expects second quarter 2 0 2 2 net income of
Got everything wrong first time. If can please also explain solutions, thank you.
Santana Rey expects second quarter net income of Business Solutionss line of computer furniture to be the same as the first quarters net income reported below without any changes in strategy. Sales were desk units sales price of $ and chairs sales price of $
BUSINESS SOLUTIONSComputer Furniture SegmentSegment Income StatementFor Quarter Ended March Sales$ Cost of goods soldGross profitSelling, general, and administrative expensesSales commissions $ Advertising expensesGeneral and administrative expensesNet income$
Reflects activity only related to the computer furniture segment.
Sales: $ $ $
Cost of goods sold: $ $ $
Santana believes that sales will total desks and chairs for the next quarter if selling prices are reduced to $ for desks and $ for chairs and advertising expenses are increased to $ for the quarter. Product costs per unit and amounts of all other expenses will not change.
Required:
Prepare a budgeted income statement for the computer furniture segment for the quarter ended June that shows the results from implementing the proposed changes.
Do the proposed changes increase or decrease budgeted net income for the quarter?
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