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: Data Budgeted unit sales. Selling price per unit 1 Chapter 8: Applying Excel 2 3 Data 4 5 Budgeted unit sales A Year 2 Quarter 2 3 Year 3 Quarter 1 50,000 $ 7 70,000 115,000 65,000 90,000 90,000 6 7 Selling price per unit 8 Accounts receivable, beginning balance 9 Sales collected in the quarter sales are made B C D E F G 1 2 3 4 Year 3 Quarter 1 2 50,000 70,000 115,000 65,000 90,000 90,000 7 per unit $ 65,000 75% 10 Sales collected in the quarter after sales are made 11 Desired ending finished goods inventory is 12 Finished goods inventory, beginning 13 Raw materials required to produce one unit 14 Desired ending inventory of raw materials is 15 Raw materials inventory, beginning 16 Raw material costs 17 Raw materials purchases are paid 18 and 19 Accounts payable for raw materials, beginning balance $ 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 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 81,500