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please help. thanks. Requirement 2: The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping
please help. thanks.
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 \$1. The marketing manager would like to use the following projections in the budget: \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline & A & & B & C & D & E & F & G \\ \hline 1 & Chapter 8: Applying Excel & & & & & & & \\ \hline \multicolumn{9}{|l|}{2} \\ \hline 3 & Data & & & & & & \multicolumn{2}{|l|}{ Year 3 Quarter } \\ \hline 4 & & & 1 & 2 & 3 & 4 & 1 & 2 \\ \hline 5 & Budgeted unit sales & & 50,000 & 65,000 & 110,000 & 05,000 & 85,000 & 100,000 \\ \hline 6 & & & & & & & & \\ \hline 7 & - Selling price por unit & $ & 7 & per unit & & & & \\ \hline 8 & - Accounts roceivabie, beginning batance & s & 65,000 & & & & & \\ \hline 9 & - Sales collected in the quarter sales are mado & & 75% & & & & & \\ \hline 10 & - Salas collected in the quarter ather sales are made & & 25% & +2 & & & & \\ \hline 11 & - Desited ending finched goods inventory is & & 30% & \multicolumn{5}{|c|}{ of the budgoted unt sales of the noxt quarter } \\ \hline 12 & - Finshed goods inventory begenning & & 12,000 & units & & & & \\ \hline 13 & - Raw materials required to produce one unt & & 5 & pounds & & & & \\ \hline 14 & - Desired ending inventory of raw enaleriak is & & 10% & \multicolumn{5}{|c|}{ of the next quarter's production needs } \\ \hline 15 & - Rawar matenais imwentory, beginfino & & 23,000 & pounds & & & & \\ \hline 16 & - Paw malenal costs & 5 & 080 & per pound & & & & \\ \hline 17 & - Raw materiaks purchases are pad & - & 60% & \multicolumn{5}{|c|}{ in the quarlor the purchases are mada } \\ \hline 18 & and & & 40% & \multicolumn{5}{|c|}{ in Ehe quarter following purchase } \\ \hline 19 & - Accounts payabie for raw matenak, beginning balance & 3 & 81,500 & & & & & \\ \hline \end{tabular} 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? 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 Step by Step Solution
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