The company has just hired a new marketing manager who insists that unit sales can be...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 Data 2 Budgeted unit sales 45,000 65,000 B 115,000 4 Year 3 Quarter 1 2 70,000 80,000 100,000 Selling price per unit $7 1 Chapter 8: Applying Excel 2 3 Data 4 5 Budgeted unit sales 6 7 A B C D E F 2 3 4 45.000 65.000 115,000 70,000 . Selling price per unit $ 7 per unit Year 3 Quarter 1 80,000 Data Budgeted unit sales Selling price per unit Accounts receivable, beginning balance Sales collected in the quarter sales are made 1 2 3 4 45,000 65,000 115,000 70,000 S 7 per unit S 65,000 75% Sales collected in the quarter after sales are made . Desired ending finished goods inventory is Finished goods inventory, beginning Raw materials required to produce one unit Desired ending inventory of raw materials is Raw materials inventory, beginning 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 . Raw material costs $ 0.80 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 S 81,500 a. What are the total expected cash collections for the year under this revised, budget? Expected cash collections for the year Year 3 Quarter 1 2 80,000 100,000 b. What is the total required production for the year under this revised budget? Total required production for the year c. What is the total cost of raw materials to be purchased for the year under this revised budget? Total cost of raw materials to be purchased for the year d. What are the total expected cash disbursements for raw materials for the year under this revised budget? Total expected cash disbursements for raw materials for the year e. After seeing this revised budget, the production manager cautioned that due to the current production constraint, a complex machine, the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem? 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 Data 2 Budgeted unit sales 45,000 65,000 B 115,000 4 Year 3 Quarter 1 2 70,000 80,000 100,000 Selling price per unit $7 1 Chapter 8: Applying Excel 2 3 Data 4 5 Budgeted unit sales 6 7 A B C D E F 2 3 4 45.000 65.000 115,000 70,000 . Selling price per unit $ 7 per unit Year 3 Quarter 1 80,000 Data Budgeted unit sales Selling price per unit Accounts receivable, beginning balance Sales collected in the quarter sales are made 1 2 3 4 45,000 65,000 115,000 70,000 S 7 per unit S 65,000 75% Sales collected in the quarter after sales are made . Desired ending finished goods inventory is Finished goods inventory, beginning Raw materials required to produce one unit Desired ending inventory of raw materials is Raw materials inventory, beginning 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 . Raw material costs $ 0.80 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 S 81,500 a. What are the total expected cash collections for the year under this revised, budget? Expected cash collections for the year Year 3 Quarter 1 2 80,000 100,000 b. What is the total required production for the year under this revised budget? Total required production for the year c. What is the total cost of raw materials to be purchased for the year under this revised budget? Total cost of raw materials to be purchased for the year d. What are the total expected cash disbursements for raw materials for the year under this revised budget? Total expected cash disbursements for raw materials for the year e. After seeing this revised budget, the production manager cautioned that due to the current production constraint, a complex machine, the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem?
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these finance questions
-
As a horse and wagon are accelerating from rest, the horse exerts a force of 400 N on the wagon (Figure 2.56) . Illustrating Newtons third law, the wagon exerts an equal and opposite force of 400 N....
-
a. What is the smallest unit of measurement on the ruler above? (e.g., millimeter, centimeter) b. How accurate do you think you can be when measuring an object with this ruler? Explain your answer....
-
Consider a beam with two perpendicular segments subjected to a concentrated load as shown in Fig. 9.52. Using two beam elements, determine the deflection and stresses in the two segments of the beam....
-
Show that f in example 3.1 is linear. The function f : 2 2 defined by F( x1, x2) = (x1 cos - x2 sin ,x1 sin + x2 cos ), 0 0 2 rotates any vector in the plane counter clock wise through the angle...
-
What is fair market value?
-
Figure Q28.5 shows the typical photoelectric behavior of a metal as the anode-cathode potential difference \(\Delta V\) is varied. a. Why do the curves become horizontal for \(\Delta V \geqq 1...
-
Selected pre-adjustment account balances and adjusting information of Sunset Cosmetics Inc. for the year ended December 31, 2011, are as follows: Retained Earnings, January 1, 2011 . . . . . . . . ....
-
What are "meta" tags for? How can you provide information for Google using Meta tags on your page?
-
I choose this topic: CWE-640: week password recovery mechanism for forgotten password Description: Knowing Security Weaknesses. This activity helps students to become more familiar with security...
-
Economies of scale can be defined as the connection between the size of the corporation as well as that the corporation's capability to sell its goods as well as its products minimal potential cost....
-
Find the new car prices for two popular cars: Honda Accord and the Ford Fusion. What are their prices?Are the two cars closely priced? Do you think physically similar goods are close substitutes when...
-
Referring to the daily-return graphs for the SPDR S&P 500 ETF Trust (SPY) and the Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG) given below: 10 10-1 SPY 10 Empirical Gaussian 10-1...
-
Question 2. Suppose that, in an election with two candidates, there are six voters, 1, 2, 3, 4, 5, and 6, who are all concerned with the same issue. Voter i has a single-peaked preference with a peak...
-
Michael decides to drive because he's excited about his new car, plus, he thinks the firm owes him for having suffered too many poor flights on previous trips. What is the opportunity cost to the...
-
Identify the information security metrics needed to determine and to measure the effectiveness of your recommendations. Discuss what information metric or tools management is currently being used in...
-
Consider a closed, rigid tank with a volume of 0.8L, filled with cold water initially at 27C. The tank is filled such that there are no voids (air pockets) within. The initial pressure within the...
-
What percentage of women have red blood cell counts in the normal range from 4.2 to 5.4? Assume that red blood cell counts of women are normally distributed with a mean of 4.577 and a standard...
-
Find P 80 , the 80th percentile for the red blood cell counts of women.
-
If 25 women are randomly selected, find the probability that the mean of their red blood cell counts is less than 4.444. Assume that red blood cell counts of women are normally distributed with a...
Study smarter with the SolutionInn App