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The Chapter $8$ Form worksheet is to be used to create your own worksheet version of the Review Problem in the text.

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 $3$ Quarter

Data $123412$

Budgeted unit sales $45,00070,000105,00075,00080,000100,000$

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 current production constraint, a complex milling machine, the plant can produce no more than $80,000$ units in any one quarter. Is this a potential problem?

multiple choice

No

Yes