The Suzuki Company in Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model Z in 2020 is 800,000 units. Suzuki’s ending inventory is 100,000 units, and its beginning inventory is 120,000 units. The company’s budgeted unit selling price to its distributors and dealers is 400,000 yen.
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 yen per wheel,
Required:
1. Compute the budgeted sales in yen.
2. Compute the number of motorcycles to be produced.
3. Compute the number of budgeted purchases of wheels in units.
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