Chapter 8 Applying Excel The Excel worksheet form below is to be used to recreate the Review Problem related to Mynor Corporation 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 CS to 75000 units The total expected cash collections for the year should now be 2085000 The required production for the year should be 274000 units The cost of raw materials to be purchased for the year should be I I06800 whereas the total cash disbursements for the year should be 1095980 If you do not get these answers find the errors in your worksheet and correct them Why have the total cash disbursements for raw materials increased 2 The company just hired a new marketing manager who insists that unit sales can be dramati cally 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 1 2 3 4 1 2 Budgeted unit sales 50000 70000 120000 80000 90000 100000 x Selling price per unit 7 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 90000 units in any one quarter Is this a potential problem If so what can be done about it