What is the variable manufacturing cost per? vehicle

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Reference no: EM132305516

Combined Motors specializes in producing one specialty vehicle. It is called Surfer and is styled to easily fit multiple surfboards in its back area and? top-mounted storage racks.

CombinedCombined

has the following manufacturing? costs:

plant management costs : $1,860,000

Cost of leasing equipment $2,724,000

Workers wages $900 per surfer vehicle produced

Direct materials costs: Steel, $1700 per surfer tires, $140 per tire, each surfer takes 5 tires (one spare)

0-500 : $80,000

501-1000 tires: $95,000

more than 1,000: $230,000

1. What is the variable manufacturing cost per? vehicle? What is the fixed manufacturing cost per? month?

2. Plot a graph for the variable manufacturing costs and a second for the fixed manufacturing costs per month. How does the concept of relevant range relate to your? graphs? Explain.

3. What is the total manufacturing cost of each vehicle if 95 vehicles are produced each? month?

220 ?vehicles? How do you explain the difference in the manufacturing cost per? unit?

Reference no: EM132305516

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