Excel Project-Part 3 Chapter 7: Applying Excel [LO7-2, LO 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 Budgeted unit sales Selling price per unit 50,000 70,000 120,000 70,000 80,000 95,000 $7 per unit 1 Chapter 7: Applying Excel 3 Data 5 Budgeted unit sales Year 2 Quarter Year 3 Quarter 0,000 70,000 120,000000080,000 95.000 Selling price per unit $8 per unit Accounts receivable, beginning balake 9Sales collected in the quarter sales are made 0 Sales collected in the quarter after sales are made 11 Desired ending finished goods inventory is 12 .Finished goods inventory, beginning 3 Raw materials required to produce one unit 4Desired ending inventory of raw materials is 5 Raw materials inventory, beginning 6 Raw material costs 7 Raw materials purchases are paid $65,000 75% 25% | 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 10% of thenext quarters production needs 23,000 pounds 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 18 and $81,500 19 Accounts payable for raw materials, beginning balance 20 a. What are the total expected cash collections for the year under this revised 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 units c. What is the total cost of raw materials s be purchased for the year under this revised budget? otal cost of raw materials to be purchased for the ear What are the total expected cash disbursements for raw materials for the year under this revised budget? d. 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 90,000 units in any one quarter. Is this a potential problem? Yes No