?The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8.25 to $7.50 The marketing manager would like to use the following projections in the budget:

After seeing this revised budget, the production manager cautioned that due to the limited availability of a complex milling machine, the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem? If so, what can be done about it? Please provide information and detail.

Year 2 Quarter 03 Year 3 Quarter Q1 90,000 Q4 Q1 50,000 Q2 70,000 Q2 100,000 Budgeted Unit Sales Selling Price Per Unit 120,000 80,000 7.50 Because of this change, the beginning inventory of raw materials must be increased to accommodate the increased budgeted sales. Change beginning raw materials to 32,600