speaker would increase annual sales by at The sales manager estimates that the least 20%. that changes are made as described above, prepare a projected contribution the company's new break-even in format income statement for next year Show data on a total. per unit, and percentage basis -even point in both units and dollars of sales. Uise the formula method. c Would you recommend that the changes be made? 19. Mynor Corporation manufactures and sells a seasonal manufactures and sells a seasonal product that has peak sales in the third The following information concerns operations for Year 2-the coming year-and for quarter. the first two quarters of Year 3 a. The company's single product sells for $8 per unit. Budgeted sales in units for the next six Year 3 0 uarter 70,00080,000 b. Sales are collected in the following pattern. 75% in the quarter the sales are made, and the quarters are as follows (all sales are on credit) Budgeted Unit Sales 40,000 60,000 100,000 50,000 25% in the following quarter. On January 1, Year 2, the company's balance sheet showed $65,000 in accounts receivable, all of which will be collected in the first quarter of the year. Bad debts are negligible and can be ignored. c. The company desires an ending finished goods inventory at the end of each quarter equal to 30% of the b unit sales for the next quarter. On December 31. Year 1, the company had 12,000 units on hand. d. Five pounds of raw materials are required to complete one unit of product. The company requires ending raw materials inventory at the end of each quarter equal to 10% of the following quarter's production needs. On December 31, Year 1, the company had 23,000 pounds of raw materials on hand. e. The raw material costs $0.80 per pound. Raw material purchases are paid for in the following pattern: 60% paid in the quarter the purchases are made, and the remaining 40% paid in the following quarter. On January 1, Year 2, the company's balance sheet showed $81,500 in accounts payable for raw material purchases, all of which will be paid for in the first quarter of the year Required Prepare the following budgets and schedules for the year, showing both quarterly and total figures: I. A sales budget and a schedule of expected cash collections. 2. A production budget