Question
ABC Motorcar in Indonesia produces cars for all the popular FX8 in 2021 is 4,000 units. ABC Motorcar has an initial inventory of 600 units.
ABC Motorcar in Indonesia produces cars for all the popular FX8 in 2021 is 4,000 units. ABC Motorcar has an initial inventory of 600 units. The final inventory was 450 units. The current selling price of the FX8 model to distributors and dealers is $ 35,200. The company does not want to increase its selling price in 2021. ABC Motorcar does not manufacture tires. The company buys tires from outside suppliers. One complete car requires five tires including tires for extra wheels. The company's final inventory target is 400 tires, and its initial inventory is 350 tires. The budgeted purchase price is $ 45 per tire. a. Calculate budgeted income in dollars. b. Count the number of cars that ABC Motorcar must produce. c. Calculate tire purchases budgeted in quantity and dollars. d. What actions can ABC Motorcar managers take to reduce the budgeted purchase costs for tires assuming the same budgeted sales are for the Model FX8?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started