The Baja Co in Mexico has a division that manufactures bicycles. Its budgeted sales for Model XG in are units. Baja's target ending inventory is units, and its beginning inventory is units. The company's budgeted selling price to its distributors and dealers is 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 wheels, and its beginning inventory is wheels. The budgeted purchase price is pesos per wheel.
Read the requirements
Requirement Compute the budgeted revenues in pesos.
tabletableBudgetedunitstableBudgeted sellingprice per unittableTotal budgetedrevenuesModel 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
