The company just hired a new marketing manager who insists 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

Budgeted unit sales $45,00070,000115,00060,00085,00095,000$

Selling price per unit $$7$ ABCDEFG

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$9$

$10$

$11$

$12$

$13$

$14$

$15$

$16$

$17$

$18$

$19$

Chapter $8$: Applying Excel

Data Year $3$ Quarter

$123412$

Budgeted unit sales $45,00070,000115,00060,00085,00095,000$

$$ Selling price per unit $$7$ per unit

$$ Accounts receivable, beginning balance $$65,000$

$$ Sales collected in the quarter sales are made $75\%$

$$ Sales collected in the quarter after sales are made $25\%$

$$ Desired ending finished goods inventory is $30\%$ of the budgeted unit sales of the next quarter

$$ Finished goods inventory, beginning $12,000$ units

$$ Raw materials required to produce one unit $5$ pounds

$$ Desired ending inventory of raw materials is $10\%$ of the next quarter's production needs

$$ Raw materials inventory, beginning $23,000$ pounds

$$ Raw material costs $$0\mathrm{.}80$ per pound

$$ Raw materials purchases are paid $60\%$ in the quarter the purchases are made

and $40\%$ in the quarter following purchase

$$ Accounts payable for raw materials, beginning balance $$81,500$