The Suzuki Company in Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2013 is 985,000 units. Suzuki’s target ending inventory is 115,000 units, and its beginning inventory is 152,000 units. The company’s budgeted selling price to its distributors and dealers is 505,000 yen (¥) 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 28,000 wheels and its beginning inventory is 19,000 wheels. The budgeted purchase price is ¥21,300 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.