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:

Year $2$ Quarter

Year $3$ Quarter

Data $123412$

Budgeted unit sales $45,00070,000115,00075,00085,000100,000$

Selling price per unit $$7$

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 $90,000$ units in any one quarter. Is this a potential problem?

multiple choice

Yes

No$\backslash$table$[[,$A$,,$B$,C,D,E,F,$G$],[1,$Chapter $20$: Applying Excel,,,,,,,$],[2],[3,$Data,,,,,,Year $3$ Quarter$],[4,,,1,2,3,4,1,2],[5,$Budgeted unit sales,,$45,000,70,000,115,000,75,000,85,000,100,000],[6],[8,-$ Accounts receivable, beginning balance,$$,65,000,,,,,],[9,-$ Sales collected in the quarter sales are made,,$75\%,,,,,],[10,-$ Sales collected in the quarter after sales are made,,$25\%,,,,,],[11,-$ Desired ending finished goods inventory is$,,30\%,$of the budgeted unit sales of the next quarter$],[12,-$ Finished goods inventory, beginning,,$12,000,$units,,,,$],[13,-$ Raw materials required to produce one unit,,$5,$pounds,,,,$],[15,-$ Raw materials inventory, beginning,,$23,000,$pounds,,,,$],[16,-$ Raw material costs,$$,0\mathrm{.}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,,,,,]]$