Answer
To reduce budgeted purchasing costs of wheels with the same budgeted sales for Model G, Mochizuki's managers can consider the following actions:
Negotiating with the supplier for a lower purchase price per wheel.
Increasing the target ending inventory of wheels to take advantage of bulk purchasing discounts.
Implementing cost-saving measures in the manufacturing process, such as reducing waste and improving efficiency.
Exploring alternative suppliers to find better deals on wheel purchases.
Work Step by Step
To reduce budgeted purchasing costs of wheels with the same budgeted sales for Model G, Mochizuki's managers can consider the following actions:
Negotiating with the supplier for a lower purchase price per wheel.
Increasing the target ending inventory of wheels to take advantage of bulk purchasing discounts.
Implementing cost-saving measures in the manufacturing process, such as reducing waste and improving efficiency.
Exploring alternative suppliers to find better deals on wheel purchases.
