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The Baja Co. in Mexico has a division that manufactures bicycles. Its budgeted sales for...

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Accounting

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.
\table[[,\table[[Budgeted],[units]],\table[[Budgeted selling],[price per unit]],\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?
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