The Riviera Co. in Mexico has a division that manufactures bicycles. Its budgeted sales for Model XG in 2021 are 94 comma 000 units. Riviera 's target ending inventory is 3 comma 000 units, and its beginning inventory is 9 comma 000 units. The company's budgeted selling price to its distributors and dealers is 3 comma 300 pesos per bicycle. Riviera buys all its wheels from an outside supplier. No defective wheels are accepted. A separate division of the company orders the extra wheels Riviera needs for replacement parts. The company's target ending inventory is 10 comma 000 wheels, and its beginning inventory is 13 comma 000 wheels. The budgeted purchase price is 700 pesos per wheel.
1) Compute the budgeted revenues in pesos
2) Compute the number of bicycles that Riviera should produce
3) Compute the budgeted purchases of wheels in units and in pesos.
