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The company has just hired a new marketing manager who insists that unit sales can be dramatically ncreased by dropping the selling price fram $8
The company has just hired a new marketing manager who insists that unit sales can be dramatically ncreased by dropping the selling price fram $8 to S7. The marketing manager would like to use the ollowing prajectians in the budget 3Quarter Budgeted unit sales Selling price per unit 45.000 65.000 15.000 70.000 80,000 90,000 $7 per uni er 7: Applying Excel 3 Data 5 Budgeted unit sales 7.Seling price per unit Year 2 Ouarter Year 3 Quarter 65.000 115.000 80.000 per urit .Accounits recceivable, beginring Sales collected in the quarter sales are made 0Sales collected in the quarter after sales are made 1.Desired ending frished goodes in 2 Firished goods inventory, begnning 3Raw Iaterials required to produce one urit 14Desired ending invertary of raw materils is 5Raw materials irvertary,b 6Raw material casts 7Raw materials 8 and 9Accourits 30% dte budgeted unit sales of tie net 12.000 units 5 pounds 10% of te next quarter's production needs 0.80 per pound 60% in the quarter te purtames are made 40% in the quarter folowing purchase or raw meterials 81,500 a. What are the tatal expected cash callections for the year under this revised budget? S 2,007,500 b. What is the total required production far the year under this revised budget? 296,500 units c. What is the total cost of raw materials to be purchased for the year under this revised budget? d. What are the total expected cash disbursements for raw materials for the year under this revised S 1211,300
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