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:

$\backslash$table$[[,$Year $2,$Quarter,Year $3$ Quarter$],[$Data$,1,2,3,4,1,2,,,,],[$Budgeted unit sales,$45,000,65,000,105,000,60,000,80,000,90,000,,,,]]$

$\backslash$table$[[,$A$,,$B$,C,$D$,$E$,$F$,$G$],[1,$Chapter $8$: Applying Excel,,,,,,,$],[2],[3,$Data,,,,,,Year $3$ Quarter$],[4,,,1,2,3,4,1,2],[5,$Budgeted unit sales,,$45,000,65,000,105,000,60,000,80,000,90,000],[6,,,,,,,,],[7,-$ Selling price per unit,$s,7,$per unit,,,,$],[8,-$ Accounts receivable, beginning balance,$$,65,000,,,,,],[9,-$ Sales collected in the quarter sales are made,,$75\%,,,,,],[10,-$ Sales collected in the quarter after sales are made,,$25\%,,,,,],[11,-$ Desired ending finished goods inventory is$,,30\%,$of the budgeted unit sales of the next quarter$],[\backslash$table$[[11],[12]],-$ Finished goods inventory, beginning,,$12,000,$units,,,,$],[13,-$ Raw materials required to produce one unit,,$5,$pounds,,,,$],[\frac{13}{14},-$ Desired ending inventory of raw materials is$,,10\%,$of the next quarter's production needs$],[\backslash$table$[[14],[15]],-$ Raw materials inventory, beginning,,$23,000,$pounds,,,,$],[\frac{15}{15},-$ Raw material costs,$$,0\mathrm{.}80,$per pound,,,,$],[16,-$ Raw materials purchases are paid,,$60\%,$in the quarter the purchases are made$],[17,$and,,$40\%,$in the quarter following purchase$],[18,-$ Accounts payable for raw materials, beginning balance,s$,81,500,,,,,]]$

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 materlals 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 materlals 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 potentlal problem?

Yes

$Nn$