Data Year 2 Quarter Year 3 Quarter 1 2 3 4 1 2 Budgeted unit sales 50,000 70,000 110,000 70,000 80,000 100,000 Selling price per unit $7 per unit

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?

equirement 2 The company has just hired a new marketing manager who insists that unit sales can be dramatically ncreased by dropping the selling price from $8 to $7. The marketing manager would like to use the ollowing projections in the budget: Data Year 2 Quarter Year 3 Quarter 2 4 2 50,000 70,000 110,000 70,000 80,000 100,000 Budgeted unit sales Selling price per unit $7 per unit 1 Chapter 8: Applying Excel Year 2 Quarter Year 3 Quarter 3 Data 4 5 Budgeted unit sales 4 70,000 50,000 70,000 110,000 80,000 100,000 7Selling price per unit 8Accounts receivable, beginning balance 9 Sales collected in the quarter sales are made 10Sales collected in the quarter after sales are made 11Desired ending finished goods inventory is 12.Finished goods inventory, beginning 13.Raw materials required to produce one unit 14Desired ending inventory of raw materials is 15. Raw materials inventory, beginning 16Raw material costs 17.Raw materials purchases are paid 18 and 19Accounts payable for raw materials, beginning balance $7 per unit $65,000 75% 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