Reference no: EM132567416

Plant management costs, $1,992,000 per year Cost of leasing equipment, $2,592,000 per year Workers' wages, $500 per Surfer vehicle produced Direct materials costs: Steel, $1,500 per Surfer; Tires, $120 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 $ 30,000 501-1,000 tires $ 65,000 more than 1,000 tires $ 190,000 currently produces 170 vehicles per month.

Question 1: Determine the fixed manufacturing cost per month at each of the following capacity levels.

0-500 tires per month

501-1,000 tires per month

more than 1,000 tires per month

Question 2: Determine the fixed manufacturing cost per month at each of the following capacity levels.

0-500 tires per month

501-1,000 tires per month

more than 1,000 tires per month

Question 3: What is the variable manufacturing cost per? vehicle? What is the fixed manufacturing cost per? month?

The variable cost per vehicle is $2,600.

Question 4: Determine the fixed manufacturing cost per month at each of the following capacity levels.

0-500 tires per month

501-1,000 tires per month

more than 1,000 tires per month