Chapter 8: (Algo) Applying Excel: Exercise (Part 2 of 2) 3 8:19 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 DOK -int Year 2 Quarter Data 2 3 4 Budgeted unit sales 50,000 65,000 105,000 75,000 Selling price per unit $7 Year 3 Quarter 1 80,000 95,800 D rence B C D A 1 Chapter 3: Applying Excel 2 E F G 3 Data 1 50,000 2 65,000 3. 105,000 4 75,000 Year 3 Quarter 1 80,000 2 95,000 $ 7 per unit $ 65,000 75% 25% 4 5 Budgeted unit sales 6 7 Selling price per unit Accounts receivable, beginning balance 8 Sales collected in the quarter sales are 9 made 10. Sales collected in the quarter after sales 11 are made 12 -Desired ending finished goods inventory is Finished goods inventory beginning 14 - Raw materials required to produce one 16.Desired ending inventory of raw materials 17 is 18 Raw materials inventory beginning 19 Raw material costs Raw materials purchases are paid and 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 15 Juni $ 10% of the next quarter's production needs 23,000 pounds 0,80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase What are the total expected cash collections for the year under this revoed budget? Expected cash collections for the year b. What is the total required production for the year under this revised budget? Total required production for the year c. What is the total cost of raw materials to be purchased for the year under this revised budget? Total cost of raw materials to be purchased for the year d. What are the total expected cash disbursements for raw materials for the year under this revised budget? Total expected cash disbursements for raw materials for the year 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