The Hayashi Co. in Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2013 is 905,000 units. Hayashi's target ending inventory is 80,000 units, and its beginning inventory is 100,000 units. The company's budgeted selling price to its distributors and dealers is 425,000 yen () per motorcycle. Hayashi buys all its wheels from an outside supplier. No defective wheels are accepted. (Hayashi's needs for extra wheels for replacement parts are ordered by a separate division of the company.) The company's target ending inventory is 60,000 wheels, and its beginning inventory is 50,000 wheels. The budgeted purchase price is 15,000 yen () per wheel.

Requirements 1. Compute the budgeted revenues in yen. 2. Compute the number of motorcycles that Hayashi should produce. 3. Compute the budgeted purchases of wheels in units and in yen. 4. What actions can Hayashi's managers take to reduce budgeted purchasing costs of wheels assuming the same budgeted sales for Model G