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 Data Year 2 Quarter Year 3 Quarter Budgeted unit sales Selling price per unit 50,000 65,000 110,000 75,000 80,000 95,000 $7 per unit 1 Chapter 9: Applying Exce 3 Data 5 Budgeted unit sales 7Selling price per unit Year 2 Quarter Year 3 Quarter 50,000 65,000 110,000 75,000 80,000 95,000 $7 per unit 8 Accounts receivable, beginning balance $65,000 Sales collected in the quarter sales are made 0Sales collected in the quarter after sales are made 11Desired ending finished goods inventory is 2 Finished goods inventory, beginning 13.Raw materials required to produce one unit 14 .Desired ending inventory of raw materials is 15.Raw materials inventory, beginning 6Raw material costs 7Raw materials purchases are paid 18 and 9 Accounts payable for raw materials, beginning balance 20 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 10% of the next quarter's production needs 23,000 pounds 50.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase S81,500 a. What are the total expected cash collections for the year under this revised budget? cash collections for the year b. What is the total required production for the year under this revised budget? otal 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 dis for raw materials for the year e. After seeing this revised budget, the production manager cautioned that due to the limited availability of a complex milling machine, the plant can produce no more than 80,000 units in any one quarter. Is this a potential problem? O Yes No