The Durango Co. in Mexico has a division that manufactures bicycles. Its budgeted sales for Model XG in 2021 are 90,000 units. Durango's target ending inventory is 8,500 units, and its beginning inventory is 14,000 units. The company's budgeted selling price to its distributors and dealers is 3,800 pesos per bicycle. Durango buys all its wheels from an outside supplier. No defective wheels are accepted. A separate division of the company orders the extra wheels Durango needs for replacement parts. The company's target ending inventory is 12,000 wheels, and its beginning inventory is 21,000 wheels. The budgeted purchase price is 500 pesos per wheel. Read the requirements. Requirements 1. Compute the budgeted revenues in pesos. 2. Compute the number of bicycles that Durango should produce. 3. Compute the budgeted purchases of wheels in units and in pesos. 4. What actions can Durango's managers take to reduce budgeted purchasing costs of wheels assuming the same budgeted sales for Model XG