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 Budgeted unit sales Selling price per unit 50,000 65,000 115,000 65,000 85,000 90,000 1 Chapter 8: Applying Excel 3 Data 4 5 Budgeted unit sales Year 3 Quarter 2 50,000 65,000 115,000 65,000 85,000 90,000 7- Selling price per unit 8Accounts receivable, beginning balance 7 per unit $ 65,000 9Sales collected in the quarter sales are made 10.Sales collected in the quarter after sales are made 11. Desired ending finished goods inventory is 12 . Finished goods inventory, beginning 13. Raw materials required to produce one unit 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds .Desired ending inventory of raw materials is 10% | of the next quarter's production needs 15. Raw materials inventory, beginning 16 23,000 pounds Raw material costs 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 17 Raw materials purchases are paid 18 and 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? pected cash collections for the year 2,016,250 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 90,000 units in any one quarter. Is this a potential problem? Yes No