The company has just hired a new marketing manager who insists that unit sales c
ID: 2569181 • Letter: T
Question
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
What are the total expected cash collections for the year under this revised budget?
What is the total required production for the year under this revised budget?
What is the total cost of raw materials to be purchased for the year under this revised budget?
What are the total expected cash disbursements for raw materials for the year under this revised budget?
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 80,000 units in any one quarter. Is this a potential problem?
References
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:
10.00 points Chapter 7: Applying Excel: Exercise (Part 2 of 2) The company has just hired a new marketing manager who insists that unit sales can be dramaticaly increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget Budgeted unit sales 50,000 70,000 110,000 76,000 80,000 90,000 1 Chapter 7: Applying Excel 3 Data 5 Budgeted unit sales Year 2 Quaner Year 3 Quarter 50,000 0,000 10,000 7500080,000 90,000 Selling price per unt 58 per unit $65,000 9 ·Sales oolocted in the quarter sales are made 10 'Saies colected in the garter ater sal are made 1Desired ending rished goods inventorys 2 Finished goods inventory, beginning 3 Raw materials required to produce one unit 4Desired ending inventory of eaw materials is 5 Raw materiais invetory begining 6 Raw material costs 17Raw materials purchases ane paid 18and 19 Accounts payable for raw materials, beginning balance 5%ofthe budgeted unit sales of the next oaner 2,000 units 5 pounds 10% ofthe next quners poducton needs 23,000 pounds 50.80 per pound 60% inthe quarter 40% inthe quarer Proases are made erg purchase 81,500 MacBook Air 2 4Explanation / Answer
I have re draft the question since image is not clear please verify the date before refer to the solution .
E)No
Account receivable Opening Balance 65000 Sales collected in the Quarter Sale are made 75% Sales collected in the next Quarter sale are made 25% Desired finished good inventory is 30% of the budgeted unit sales of the next Quater Finished goods inventory at the begening 12000 unit Raw Material required to produced one unit 5 pounds Desired ending enventory of raw material is 10% 0f the next quarter production needs Raw material cost .80 Per p Raw material purchase are paid 60 %In the quarter puurchase are made and 40 % in the quarter following purchase Account payable for Raw material beginning balance 81500