The following questions are all apart of the same questions you can use the chart above to answer.

a. What are the total expected cash collections for the year under this revised budget?

b. What is the total required production for the year under this revised budget?

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 budget?

e. After seeing this revised budget, the production manager cautioned that due to the current production constraint, a complex milling machine, the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem?

• Yes or No

Requirement 2: 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: Year 2 Quarter Year 3 Quarter Data Budgeted unit sales Selling price per unit 4 45,900 65,000 12e,800 60,00080,900 90,000 1 Chapter 8: Applying Excel 3 Data Year 3 Quarter Budgeted unit sales 45,000 65,000 120,000 60,000 80,000 90,000 7 .Selling price per unit 8Accounts receivable, beginning balanoe 9 . Sales collected in the quarter sales are made 10 Sales collected in the quarter after sales are made 11 Desired ending finished goods inventory is 12Finished goods inventory, beginning 13 . Raw materials required to produce one unit 14- Desired ending inventory of raw materials is 15Raw materials inventory, beginning 16Raw material costs 17 - Raw materials purchases are paid 18and 19Accounts payable for raw materials, beginning balance 7 per unit 65,000 15%, 25% 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 0.80 per pound 60%) in the quarter the purchases are made 4096| in the quarter following purchase $ 81,500