The Excel worksheet form that appears below is to be used to recreate the Review Problem related

Question:

The Excel worksheet form that appears below is to be used to recreate the Review Problem related to Mynor Corporation. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this worksheet form.

The Excel worksheet form that appears below is to be
The Excel worksheet form that appears below is to be

You should proceed to the requirements below only after completing your worksheet.
Required:
1. Check your worksheet by changing the budgeted unit sales in Quarter 2 of Year 2 in cell C5 to 75,000 units. The total expected cash collections for the year should now be $2,085,000. If you do not get this answer, find the errors in your worksheet and correct them. Have the total cash disbursements for the year changed? Why or why not?
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:

The Excel worksheet form that appears below is to be

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 limited availability of a complex milling machine, the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem? If so, what can be done about it?

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-1259307416

16th edition

Authors: Ray Garrison, Eric Noreen, Peter Brewer

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