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.

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 Budgeted unit sales Selling price per unit 50,000 70,000 105,000 60,000 90,000 95,000 $7 1 Chapter 8: Applying Excel 3 Data Year 3 Quarter 60,000 5 Budgeted unit sales 6 7Selling price per unit 8 Accounts receivable, beginning balance 9Sales collected in the quarter sales are made 10 Sales collected in the quarter after sales are made 11 . Desired ending finished goods inventory is 12Finished goods inventory, beginning 13.Raw materials required to produce one unit 14. Desired ending inventory of raw materials is 15. Raw materials inventory, beginning 16Raw material costs 17Raw materials purchases are paid 18 and 19Accounts payable for raw materials, beginning balance 81,500 50,000 70,000 105,000 90,000 95,000 7 per unit 65,000 75% 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 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase