Chapter $8$: $($Algo$)$ Applying Excel: Exercise $($Part $2$ 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 like to use the following projections in the budget:

Year $2$ Quarter

Year $3$ auarter

Data

Budgeted unit sales

Selling price per unit

$1$

$50,000$

$$7$

$70,000115,000$

$4$

$75,000$

$90,00090,000$

D

E

F

G

Chapter $8$: Applying Excel

$2$

$3$

Data

Year $3$ Quarter

$4$

$2$

$3$

$4$

$1$

$2$

$5$

Budgeted unit sales

$50,000$

$70,000$

$115,000$

$75,000$

$90,000$

$90,000$

$6$

$$ Selling price per unit

$

$7$ per unit

$8$

$$ Accounts receivable, beginning balance

$

$65,000$

$9$

$$ Sales collected in the quarter sales are made

$75\%$

$10$ Sales collected in the quarter after sales are made

$25\%$

$11$ Desired ending finished goods inventory is

$30\%$ of the budgeted unit sales of the next quarter

$12$ Finished goods inventory, beginning

$12,000$ units

$13$ Raw materials required to produce one unit

$5$ pounds

$14$ Desired ending inventory of raw materials is

$10\%$ of the next quarter's production needs

$15$

$$ Raw materials inventory, beginning

$23,000$ pounds

$16$

$$ Raw material costs

$

$0\mathrm{.}80$ per pound

$17$ Raw materials purchases are paid

$60\%$ in the quarter the purchases are made

$18$

and

$40\%$ in the quarter following purchase

$19$

$$ Accounts payable for raw materials, beginning balance

$

$81,500$