a. What are the total expected cash collections for the year under this revised budget? & Answer is complete and correct. $ 1,963,750 & b. What is the total required production for the year under this revised budget? & Answer is complete and correct. c. What is the total cost of raw materials to be purchased for the year under this revised budget? 3 Answer is complete but not entirely correct. S 320400 d. What are the total expected cash disbursements for raw materials for the year under this revised budget? Answer is complete but not entirely correct. Chapter 8: Applying Excel: Exercise (Part 2 of 2) (Algo) Requirement 2: 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 Data 1 2 4 1 2 Budgeted unit sales 45,000 65,000 165,000 75,000 85,000 160,000 Selling price per unit $ 7 A B C D E F G 1 |Chapter 8: Applying Excel 2 3 |Data Year 3 Quarter 4 1 2 3 4 1 2 5 |Budgeted unit sales 45,000 65,000 105,000 75,000 85,000 100,000 6 7. Selling price per unit 7 per unit 8 | Accounts receivable, beginning balance 65,000 9 |+ 3ales collected in the quarter sales are made 75% 10 |. sales collected in the quarter after sales are made 25% 11 |2 Desired ending finished goods inventory is 30% of the budgeted unit sales of the next quarter 12 1. Finished goods inventory, beginning 12,000 units 13 1, Raw materials required to produce one unit 5 pounds 14 1, Desired ending inventory of raw materials is 10% of the next quarter's production needs 150 Raw materials inventory, beginning 23,000 pounds ey . Raw material costs 0.80 per pound 17 Raw materials purchases are paid 60% in the quarter the purchases are made 18 and 40% in the quarter following purchase 2 Accounts payable for raw materials, beginning balance 81,500 c. What is the total cost of raw materials to be purchased for the year under this revised budget? D Answer is complete but not entirely correct. d. What are the total expected cash disbursements for raw materials for the year under this revised budget? 3 Answer is complete but not entirely correct. e. After seeing this revised budget, the production manager cautioned that due to the current production constraint, a complex milling machine, the plant can produce no more than 80,000 units in any one quarter. Is this a potential problem? No Yes @