Question
Hildon Ltd has a division that manufactures motorised bicycles. Its budgeted sales for Model X in 2019 is 95 000 units. Hildons target ending inventory
Hildon Ltd has a division that manufactures motorised bicycles. Its budgeted sales for Model X in 2019 is 95 000 units. Hildons target ending inventory is 7000 units and its beginning inventory is 11 000 units. The companys budgeted selling price to its distributors and dealers is $3500 per bicycle. Hildon buys all its wheels from an outside supplier. No defective wheels are accepted. (Hildons needs for extra wheels for replacement parts are ordered by a separate division of the company.) The companys target ending inventory is 14 000 wheels, and its beginning inventory is 16 000 wheels. The budgeted purchase price is $400 per wheel. Required
1. Calculate the budgeted sales in dollars.
2. Calculate the number of bicycles to be produced.
3. Calculate the budgeted purchases of wheels in units and in dollars.
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