Question - Dirt Bike Co in Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2003 is 800,000 units. Dirt Bike's target ending inventory is 100,000 units, and its beginning inventory is 120,000 units. The company's budgeted selling price to its distributors and dealers is 400,000 yen per motorcycle. Dirt Bike Co buys all its wheels from an outside supplier. No defective wheels are accepted. The company's target ending inventory is 30,000 wheels, and its beginning inventory is 20,000 wheels. The budgeted purchase price is 16,000 yen per wheel.
Required: (show your computations)
1. Compute the budgeted revenues in yen
2. Compute the number of motorcycles to be produced.
3. Compute the budgeted purchases of wheels in units and in yen.