$1.$ Enter a formula into each of the cells marked with a $?$ in your chapter $8$ sheet.

a$.$ Check your worksheet by changing the budgeted unit sales in Quarter $2$ of Year $2$ in cell C$5$ to $75,000$ units. The total expected cash collections for the year should now be $$2,085,000.$ The required production for the year should be $274,000$ units. THE cost of raw materials to be purchased for the year should be $$1,106,800,$ whereas the total cash disbursements for the year should be $$1,095,980.$ IF you do not get these answers, find the errors in your worksheet and correct them.

b$.$ Why have the total cash disbursements for raw materials increased?

$2.$ Create a copy of your worksheet from part $1.$

a$.$ The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $$8$ to $$7.$ The marketing manager would like to use the following projections in the budget.

Year $2$ Quarter Year $3$ Quarter

$123412$

Budgeted unit sales $50,00070,000120,00080,00090,000100,000$

Selling price per unit $$7$

b$.$ What are the total expected cash collections of the year under this revised budget? Highlight the appropriate cell$($s$).$

c$.$ What is the total required production for the year under this revised budget? Highlight the appropriate cell$($s$).$

d$.$ What is the total cost of raw materials to be purchased for the year under this revised budget? Highlight the appropriate cell$($s$).$

e$.$ What are the total expected cash disbursements for raw materials for the year under this revised budget? Highlight the appropriate cell$($s$).$

f$.$ After seeing this revised budget, do you think following the advice of the marketing manager is a good idea? Explain in a few sentences below your work in your excel document.

g$.$ After seeing this revised budget, the production manager cautioned that due to the limited availability of a complex milling machine, the plant can produce no more than $90,000$ units in any one quarter. Is this a potential problem? If so$,$ what can be done about this? Explain in a few sentences below your work in your excel document.