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Chapter 8: Applying Excel: Exerdse (Part 2 of 2) of 2 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 lke to use the following projections in the budget Year 3 Quarter Year 2 Quarter Data Budgeted unit sales 45,00 65,000 110,000 70,000 Selling price per unit $7 80,000 90, eee 1 45,000 2 65,000 3 110.000 4 70,000 Year 3 Quarter 1 2 80.000 90.000 IS 7 per unit S 65,000 75% 25% 3 Data 4 Budgeted unic sales 5 6 Selling price per unit 7 Accounts receivable beginning 8 balance 9 Sales collected in the quarter sales are made 10 Sales collected in the quarter after sales are made Desired ending finished goods 11 inventory is Finished goods inventory beginning Raw materials required to produce one Desired ending inventory of row 14 materials is Raw materials inventory, beginning 15 16 Raw material costs 17 - Raw materials purchases are paid 18 and Accounts payable for raw materials, beginning balance the next quarter 12 13 June 30% 12,000 5 of the budgeted unit sales units pounds 10% of the next quarter's production needs 23.000 pounds per $ 0.80 ripound 60% trim the quarter the purchases are made 40% in the quarter following purchase is 81.500 19 a. What are the total expected cash collections for the year under this revised budget Answer is complete and correct. Expected cash Collections for the year 1.972.500 What is the total oured production for the year under this movied oudget? cel Assignments Saved Check my work mode: This shows what is correct or incorrect for the work you have completed Required information 2 a What are the total expected cash collections for the year under this revised budget? Answer is complete and correct. collections for the ye 1.972.500 b. What is the total required production for the year under this revised budget? Answer is complete but not entirely Total required production 299,00033 for the year c. What is the total cost of raw materials to be purchased for the year under this revised budget? Answer is complete but not entirely correct. Total cost of raw materials to be purchased for the year 1 206,8003 d. What are the total expected cash disbursements for raw materials for the year under this revised budget? Answer is complete but not entirely correct. Total expected cash disbursements for rew materials for the year 1.175.82d9 e After seeing this revised budget, the production manager cautioned that due to the current production constraint, a complex ming machine, the plant can produce no more than 80,000 units in any one Quarter is this a potential probleme Yes NO

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