Requirement 2 The company has just hired a new marketing manager who is that unit sales can be chamatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget 1 Chapter 8: Applying Excel A 2 3 Data 4 Budgeted unit sales 5 6 Selling price per unit 7 Accounts receivable, beginning balance 8 Sales collected in the quarter sales are made 9 Sales collected in the quarter after sales are made 10 Desired ending finished goods inventory is 11 Finished goods inventory, beginning 12 Raw materials required to produce one unit 13 Desired ending inventory of raw materials is T3 Quarter Year 3 Q 1,000 B C D E F G 1 2 3 4 45,000 70,000 105,000 70,000 $ 71 per unit $ 65,000 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 14 Raw materials inventory, beginning 15 Raw material costs $ 0.80 per pound 16 Raw materials purchases are paid 60% in the quarter the purchases are made and 17 40% in the quarter following purchase 18 Accounts payable for raw materials, beginning balance $ 81,500 19 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 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 new materials for the year under this revised budget? Total expected cash disbursements for raw materials for the year Year 3 Quarter 1 2 90,000 95,000 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 potential problem? No Yers