Question
a. What are the total expected cash collections for the year under this revised budget? b. What is the total required production for the year
a. | What are the total expected cash collections for the year under this revised budget? |
b. | What is the total required production for the year under this revised budget? |
c. | What is the total cost of raw materials to be purchased for the year under this revised budget? |
d. | What are the total expected cash disbursements for raw materials for the year under this revised budget? |
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: Data Year 2 Quarter Year 3 Quarter 1 2 3 4 1 2 Budgeted unit sales 45,000 70,000 105,000 65,000 90,000 90,000 Selling price per unit $7 per unit
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