please answer all with working please answer all with everything like explanation , computation , formulation with steps please answer in text not image thanks no copy paste need complete and correct answer Santana Rey expects second-quarter 2020 sales of Business Solutions's line of computer furniture to be the same as the first quarter'ssales (reported below) without any changes in strategy. Monthly sales averaged 41 desk units (sales price of $1,240) and 19 chairs(sales price of $490).BUSINESS SOLUTIONS-Computer Furniture SegmentSegment Income Statement*For Quarter Ended March 31, 2020Sales*Cost of goods sold*Gross profitExpensesSales commissions (10%)Advertising expensesOther fixed expensesTotal expensesNet income$180,450134,40046,05018,0458,70017,70044,445$ 1,605* Reflects revenue and expense activity only related to the computer furniture segment.t Revenue: (123 desks x $1,240) + (57 chairs x $490) = $152,520 + $27,930 = $180,450‡ Cost of goods sold: (123 desks x $740) + (57 chairs × $240) + $29,700 = $134,400Santana Rey believes that sales will increase each month for the next three months (April, 49 desks, 31 chairs; May, 53 desks, 34chairs; June, 57 desks, 37 chairs) if selling prices are reduced to $1,130 for desks and $440 for chairs and advertising expenses arelovol for all three months. The producte' variable cost will remain at $740 for docks and $240 for * Reflects revenue and expense activity only related to the computer furniture segment.t Revenue: (123 desks x $1,240) + (57 chairs x $490) = $152,520 + $27,930 = $180,450+ Cost of goods sold: (123 desks × $740) + (57 chairs × $240) + $29,700 = $134,400Santana Rey believes that sales will increase each month for the next three months (April, 49 desks, 31 chairs; May, 53 desks, 34chairs; June, 57 desks, 37 chairs) if selling prices are reduced to $1,130 for desks and $440 for chairs and advertising expenses areincreased by 10% and remain at that level for all three months. The products' variable cost will remain at $740 for desks and $240 forchairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $9,900 and otherfixed expenses will remain at $5,900 per month.Required:1. Prepare budgeted income statements for the computer furniture segment for each of the months of April, May, and June that showthe expected results from implementing the proposed changes. Use a three-column format, with one column for each month.2. Recommend whether Santana should implement the proposed changes. Hint. Compare quarterly income for the proposed April-May-June period to the quarterly income for the January-February-March period.Complete this question by entering your answers in the tabs below.Required 1 Required 2

An income statement is a financial statement that lists the revenue and expenses of the company.…

* Reflects revenue and expense activity only related to the computer furniture segment. t Revenue: (123 desks × $1,240) + (57 chairs × $490) = $152,520 + $27,930 = $180,450 ‡ Cost of goods sold: (123 desks × $740) + (57 chairs × $240) + $29,700 = $134,400 Santana Rey believes that sales will increase each month for the next three months (April, 49 desks, 31 chairs; May, 53 desks, 34 chairs; June, 57 desks, 37 chairs) if selling prices are reduced to $1,130 for desks and $440 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 $740 for desks and $240 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $9,900 and other fixed expenses will remain at $5,900 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 Santana should implement the proposed changes. Hint. Compare quarterly income for the proposed April- May-June period to the quarterly income for the January-February-March period. Complete this question by entering your answers in the tabs below.

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 35P