Spin Cycle makes bicycles. Budgeted sales for All-Around model for 2018 are 90,000 units. Spin's target ending finished goods inventory is 8,000 units, and beginning finished goods inventory is 7,000 units. Spin's budgeted selling price to wholesalers is $800 per bicycle.

Spin buys all its wheels from an outside supplier. Target ending inventory for wheels is 5,000 and beginning inventory is 3,500 wheels. The budget selling price per wheel is $75.

Instructions Prepare the following budgets for 2018:

a. Revenues budget in units and dollars

b. Production budget in units

c. Wheels purchases budget in units and dollars. (Hint: All-Around requires 2 wheels.)