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 Budgeted unit sales Selling price per unit 1 50,000 $7 Year 2 Quarter 2 3 70,000 105,000 4 65,000 Year 3 Quarter 1 2 85,000 95,000 A B D 1 Chapter 8: Applying Excel E F 2 3 Data 4 Year 3 Quarter 1 2 3 5 4 Budgeted unit sales 1 50,000 70,000 105,000 6 65,000 85,000 TEO $ xt 7 per unit 7 8 $ 9 65,000 75% 25% 10 11 12 Selling price per unit - Accounts receivable, beginning balance - Sales collected in the quarter sales are made Sales collected in the quarter after sales are made Desired ending finished goods inventory is - Finished goods inventory, beginning - Raw materials required to produce one unit - Desired ending inventory of raw materials is Raw materials inventory, beginning Raw material costs Raw materials purchases are paid and 13 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 14 15 16 $ 17 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 18 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 Budgeted unit sales Selling price per unit 1 50,000 $7 Year 2 Quarter 2 3 70,000 105,000 4 65,000 Year 3 Quarter 1 2 85,000 95,000 A B D 1 Chapter 8: Applying Excel E F 2 3 Data 4 Year 3 Quarter 1 2 3 5 4 Budgeted unit sales 1 50,000 70,000 105,000 6 65,000 85,000 TEO $ xt 7 per unit 7 8 $ 9 65,000 75% 25% 10 11 12 Selling price per unit - Accounts receivable, beginning balance - Sales collected in the quarter sales are made Sales collected in the quarter after sales are made Desired ending finished goods inventory is - Finished goods inventory, beginning - Raw materials required to produce one unit - Desired ending inventory of raw materials is Raw materials inventory, beginning Raw material costs Raw materials purchases are paid and 13 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 14 15 16 $ 17 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 18