The company has just hired a new markeling manager who insists that unit sales can be dramatically Increased by dropping the selling price from 58 t0 57. The marioeting manager would llke to use the following projections in the budget Data Year 2 Quarter Year 3 Quarter Budgered unit sales Seling price per unil 5,000 70,000 110,00D 60,000 90,000 95,000 S7 per uni 1 Chaptar &: Apphying Exc Data 5 Budgebed unt sales Seling price per unit ear 2 Querter ear 3 Quarter 4t0$6,000 80,000 90,000 45,000 0,000110,000 $7 per unt 85,0 Salaa clecd is the qaarter sales are made Sales colecoed in the q arter afer sales are nade Deaired ending inished goods inverbory 12Fhshed goods inventory, beginning 13Raw matenals requires to prod.ce ons un 14 Desred ending inventory of raw natrtals is Raw matenials inventory,beginning Raw material costs Raw matenais purchases are paid 30% ofte budgeted unt sales 04 th next 12,000 unts S pounds 10% of the next quarters producion needa 23,000 pourds 0.20 per po nd 60% n the quarter the purc"ases r mode 40% r, thie quarter following partis a what are the total xpected cash collections for the year under this reised budger? c What is the total cost of raw materials to be purchased for the year under this resed budget? Ater seeing this revised budget the production manager cautioned thal due to the current producion consraint, a complex miling machine the plant can preduce no more than 80,000 units in ay one quarter. Is this a potenial problem? rAters d. What are the total expected cash disbursements for raw materials for the year under this revisede b What is the total required producion for the year under this revised budgel? budget? No O Yes