for Model G in 2013 is 920,000 units. Nakamura's target ending inventory is 85,000 units, and its beginning inventory is 125,000 units. The company's budgeted selling price to its distributors and dealers is 430,000 yen () per motorcycle.Nakamura buys all its wheels from an outside supplier. No defective wheels are accepted. (Nakamura's needs for extra wheels for replacement parts are ordered by a separate division of the company.) The company's target ending inventory is 68,000 wheels, and its beginning inventory is 55,000 wheels. The budgeted purchase price is 16,000 yen () per wheel.

REQUIREMENTS

1.Compute the budgeted revenues in yen.

2.Compute the number of motorcycles that Nakamura should produce.

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

4.What actions can Nakamura's managers take to reduce budgeted purchasing costs of wheels assuming the same budgeted sales for Model G?