Question: Please provide the correct solution Requirement 2 : The company just hired a new marketing manager who insists unit sales can be dramatically increased by



Requirement 2 : The company just hired a new marketing manager who insists 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. 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 avallability of a complex milling machine. the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem? 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? \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline 5 & Budgeted unit sales & & 45,000 & 65.000 & 115,000 & 70,000 & 90,000 & 95.000 \\ \hline \multicolumn{9}{|c|}{6} \\ \hline 7 & - Selling price per unit & 5 & 7 p & per unit & & & & \\ \hline 8 & - Accounts recelvable, beginning balance & 5 & 65,000 & & & & & \\ \hline 9 & - Sales collected in the quarter sales are madn & & 75% & & & & & \\ \hline 10 & - Sales collocted in the quarter after sales are mado & & 25% & & & & & \\ \hline 11 & - Desired ending finlshed goods inventory is & & 30% & \multicolumn{5}{|c|}{ of the budgeted unit sales of the next quarter } \\ \hline 12 & - Fintibed goods inventory, beginning & & 12,000 & units & & & & \\ \hline 13 & - Raw materials required to produce one unit & & 5 & pounds. & & & & \\ \hline 14 & - Desired ending inventory of raw materials is & & 10% & \multicolumn{5}{|c|}{ of the next quarter's production needs: } \\ \hline 15 & - Raw materials inventory, beginning & & 23,000 & pounds & & & & \\ \hline 16 & - Raw material costs & 5 & 0.80 & perpound & & & & \\ \hline 17 & - Raw materials purchases are paid & & 60% & \multicolumn{5}{|c|}{ in the quarter the purchases ate made. } \\ \hline 18 & and & & 40% & \multicolumn{5}{|c|}{ in the quarter following purchase: } \\ \hline 19 & - Accounts payable for raw materials, beginning balance & $ & 81,500 & & & & & \\ \hline \end{tabular}
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