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:

Chapter 8: Applying ExcelDataYear 3 Quarter123412Budgeted unit sales45,000 70,000 105,000 70,000 80,000 90,000 Selling price per unit$7per unit Accounts receivable, beginning balance$65,000 Sales collected in the quarter sales are made75% Sales collected in the quarter after sales are made25% Desired ending finished goods inventory is30%of the budgeted unit sales of the next quarter Finished goods inventory, beginning12,000units Raw materials required to produce one unit5pounds Desired ending inventory of raw materials is10%of the next quarter's production needs Raw materials inventory, beginning23,000pounds Raw material costs$0.80per pound Raw materials purchases are paid60%in the quarter the purchases are madeand40%in the quarter following purchase Accounts payable for raw materials, beginning balance$81,500

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?