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Plant management costs, $1,596,000 per year Cost of leasing equipment, $2,856,000 per year Workers' wages, $700 per Surfer vehicle produced Direct materials costs: Steel, $1,400 per Surfer; Tires, $140 per tire, each Surfer takes 5 tires (one spare) City license, which is charged monthly based on the number of tires used in production: 0-500 tires $ 40,000 501-1,000 tires $ 60,000 more than 1,000 tires $ 210,000
Requirements
Question 1. What is the variable manufacturing cost per? vehicle? What is the fixed manufacturing cost per? month?
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