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 Year 2 Quarter Year 3 Quarter 1 2 3 4 1 2 Budgeted unit sales 45,000 65,000 105,000 60,000 90,000 90,000 Selling price per unit $7 per unit

	A	B	C	D	E	F	F
1	Chapter 9: Applying Excel
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3	Data	Year 2 Quarter				Year 3 Quarter
4		1	2	3	4	1	2
5	Budgeted unit sales	45,000	65,000	105,000	60,000	90,000	90,000
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7	Selling price per unit	$7	per unit
8	Accounts receivable, beginning balance	$65,000
9	Sales collected in the quarter sales are made	75%
10	Sales collected in the quarter after sales are made	25%
11	Desired ending finished goods inventory is	30%	of the budgeted unit sales of the next quarter
12	Finished goods inventory, beginning	12,000	units
13	Raw materials required to produce one unit	5	pounds
14	Desired ending inventory of raw materials is	10%	of the next quarter's production needs
15	Raw materials inventory, beginning	23,000	pounds
16	Raw material costs	$0.80	per pound
17	Raw materials purchases are paid	60%	in the quarter the purchases are made
18	and	40%	in the quarter following purchase
19	Accounts payable for raw materials, beginning balance	$81,500