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 Budgeted unit sales Selling price per unit Year 2 Quarter 2 3 65,000 105,000 Year 3 Quarter - [ 2 85,000 95,000 45,000 $7 75,000 A B C D E F G Chapter 8: Applying Excel Data Year 3 Quarter 1 2 nm + ON Budgeted unit sales 45,000 65,000 105,000 75,000 85,000 95,000 per unit 7 65,000 $ 75% 25% Selling price per unit 8 Accounts receivable, beginning balance 9 Sales 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 14 Desired ending inventory of raw materials is 15 Raw materials inventory, beginning 16 Raw material costs 17 Raw materials purchases are paid | 18 and 19 Accounts payable for raw materials, beginning balance 30% 12,000 5 10% 23,000 of the budgeted unit sales of the next quarter units pounds of the next quarter's production needs pounds 0.80 60% per pound in the quarter the purchases are made in the quarter following purchase 40% $ 81,500 c. What is the total cost of raw materials to be purchased for the year under this revised budget? Answer is complete and correct. Total cost of raw materials to be purchased for the year $ 1.230,800 d. What are the total expected cash disbursements for raw materials for the year under this revised budget? Answer is complete but not entirely correct. Total expected cash disbursements for raw materials for the year $ 1,237,620 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? Yes No