pany has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling im $8 to $7. The marketing manager would like to use the following projections in the budget ed unit sales S price per unit Year 2 Quarter 1 50,000 2 70,000 $ 7 3 4 Year 3 Quarter 1 2 105,000 70,000 90,000 95,000 hapter 8: Applying Excel ata A B C D E F G 1 2 3 4 Year 3 Quarter 1 2 50,000 70,000 105,000 70,000 90,000 95,000 udgeted unit sales Selling price per unit Accounts receivable, beginning balance S 7 per unit $ 65,000 Sales collected in the quarter sales are made 75% Sales collected in the quarter after sales are made Desired ending finished goods inventory is 25% 30% of the budgeted unit sales of the next quarter 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 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 16 Raw material costs $ 0.80 per pound 17 Raw materials purchases are paid 60% in the quarter the purchases are made 18 and 40% in the quarter following purchase 19 Accounts payable for raw materials, beginning balance $ 81,500 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 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? O No O Yes