Solution-What is the variable manufacturing cost per?

What is the variable manufacturing cost per? vehicle

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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

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

Question 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.

Question 3. What is the total manufacturing cost of each vehicle if 65 vehicles are produced each? month? 190 ?vehicles? How do you explain the difference in the manufacturing cost per? unit?

Reference no: EM132567403

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What is the variable manufacturing cost per? vehicle

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Reference no: EM132567403

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