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 45,000 65,000 105,000 60,000 80,000 95,000 Budgeted unit sales Selling price per unit $7 per unit 1 Chapter 7: Applying Excel 3 Data 5 Budgeted unit sales Year 2 Quarter Year 3 Quarter 45,000 65,000 105,000 60,000 80,000 95,000 Selling price per unit $8 per unit Accounts receivable, beginning balance 9 Sales collected in the quarter sales are made 0.Sales collected in the quarter after sales are made 75% 25% 30% of the budgeted unit sales of the next quarter Desired ending finished goods inventory is 2 Finished goods inventory, beginning 3 Raw materials required to produce one unit 4 Desired ending inventory of raw materials is 5 Raw materials inventory, beginning 6Raw material costs 7 Raw materials purchases are paid 18 and 9 Accounts payable for raw materials, beginning balance 20 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 $81,500 a. What are the total expected cash collections for the year under this revised budget? cash collections for the