Santana believes that sales will total 195 desks and 144 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 $16,680 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 30, 2022, that shows the results from implementing the proposed changes.

Do the proposed changes increase or decrease budgeted net income for the quarter?

Answer rating: 100% (QA)

Budgeted Income Statement for the Computer Furniture Segment For t... View the full answer