The Baja Co$.$ in Mexico has a division that manufactures bicycles. Its budgeted sales for Model XG in $2021$ are $98,000$ units. Baja's target ending inventory is $6,000$ units, and its beginning inventory is $14,000$ units. The company's budgeted selling price to its distributors and dealers is $3,400$ pesos per bicycle. Baja buys all its wheels from an outside supplier. No defective wheels are accepted A separate division of the company orders the extra wheels Baja needs for replacement parts. The company's target ending inventory is $15,000$ wheels, and its beginning inventory is $14,000$ wheels. The budgeted purchase price is $550$ pesos per wheel.

Read the requirements

Requirement $1.$ Compute the budgeted revenues in pesos.

$\backslash$table$[[,\backslash$table$[[$Budgeted$],[$units$]],\backslash$table$[[$Budgeted selling$],[$price per unit$]],\backslash$table$[[$Total budgeted$],[$revenues$]]],[$Model X$,,,]]$

Requirements

Compute the budgeted revenues in pesos.

Compute the number of bicycles that Baja should produce.

Compute the budgeted purchases of wheels in units and in pesos.

What actions can Baja's managers take to reduce budgeted purchasing costs of wheels assuming the same budgeted sales for Model XG$?$