Revenue, production and purchases budget. (15-20 minutes) The Suzuki Company in Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2001 is 800,000 units.

Suzuki’s target closing stock is 100,000 units, and its opening stock is 120,000 units. The company’s budgeted selling price to its distributors and dealers is 400,000 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 closing stock is 30,000 wheels, and its opening stock is 20,000 wheels. The budgeted purchase price is 16,000 yen per wheel.  ko8 REQUIRED 1. Calculate the budgeted revenue in yen.

2. Calculate the number of motorcycles to be produced.

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