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 2 3 4 1 2 Budgeted unit sales Selling price per unit 45,000 $7 65,000 110,000 65,000 85,000 95,000 1 Chapter 8: Applying Excel A B C D E F G 3 2 NM Data 4 5 Budgeted unit sales Year 3 Quarter 1 2 3 4 1 2 45,000 65,000 110,000 65,000 85,000 95,000 6 7 -Selling price per unit Accounts receivable, beginning balance 8 9 Sales collected in the quarter sales are made $ 7 per unit $ 65,000 75% 10 Sales collected in the quarter after sales are made 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 14 Raw materials inventory, beginning 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 15 Raw material costs $ 0.80 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 $ 81,500 19