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Blended Motors specializes in producing one specialty vehicle. It is called Surfer and is styled to easily fit multiple surfboards in its back area and
Blended 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. Blended has the following manufacturing costs Requirements 1. What is the variable manufacturing cost per vehicle? What is the fixed manufacturing cost per month? (Click the icon to view the manufacturing costs.) 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. Blended currently produces 160 vehicles per month 3. What is the total manufacturing cost of each vehicle if 100 vehicles are produced each month? 225 vehicles? How do you explain the difference in the manufacturing cost per unit? Requirement 1. What is the variable manufacturing cost per vehicle? What is the fixed manufacturing cost per month? The variable cost per vehicle is $ 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 3,050 Data Table Plant management costs, $1,992,000 per year Cost of leasing equipment, $2,064,000 per year Workers' wages, $800 per Surfer vehicle produced Direct materials costs: Steel, $1,700 per Surfer; Tires, $110 per tire, each Surfer takes 5 tires (one spare) City license, which is charged monthly based on the number of tires used in production Enter any number in the edit fields and then click 0-500 tires 501-1,000 tires more than 1,000 tires $50,000 $95,000 $250,000 parts emaining
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