Question
The Husky Co. in Mexico has a division that manufactures bicycles. Its budgeted sales for Model DP in 2018 are 93,000 units. Husky Co.'s target
The Husky Co. in Mexico has a division that manufactures bicycles. Its budgeted sales for Model DP in 2018 are 93,000 units. Husky Co.'s target ending inventory is 5,000 units, and its beginning inventory is 9,000 units. The companys budgeted selling price to its distributors and dealers is 1,500 pesos per bicycle. Husky Co. buys all its wheels from an outside supplier. No defective wheels are accepted. Husky Co's needs for extra wheels for replacement parts are ordered by a separate division of the company. The companys target ending inventory is 12,000 wheels, and its beginning inventory is 14,000 wheels. The budgeted purchase price is 400 pesos per wheel.
1) Compute the budgeted revenues in pesos. 2) Compute the number of bicycles that Husky Co. should produce. 3) Compute the budgeted purchases of wheels in units and in pesos
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