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Compute the number of motorcycles to be produced

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Question - Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 19_9 is 800,000 units. Suzuki'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 (F) per motorcycle. Suzuki buys all its wheels from an outside supplier. No defective wheels are accepted. (Suzuki's needs for extra wheels for replacement parts are ordered by a separate division of the company.) 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 per wheel.

Required -

1. Compute the budgeted revenue in yen.

2. Compute the number of motorcycles to be produced.

3. Compute the budgeted purchases of wheels in units and in yen.

Reference no: EM133154395

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