Revenue, production, and purchases budget. The Suzuki Company in Japan has a divi¬

sion that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2008 is 960,000 units. Suzuki’s target ending inventory is 120,000 units, and its beginning inventory is 144,000 units. The company’s budgeted selling price to its distributors and dealers is 480,000 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 ofthe company.) The company’s target ending inventory is 36,000 wheels, and its beginning inven¬

tory is 24,000 wheels. The budgeted purchase price is ¥19,200 per wheel.

Required 1. Compute the budgeted revenue in yen.

2. Compute the number of motorcycles to be produced.

3. Compute the budgeted purchases ofwheels in units and in yen.