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:

Plant management costs, $1,332,000 per year

Cost of leasing equipment, $2,724,000 per year

Workers' wages, $900 per Surfer vehicle produced

Direct materials costs: Steel $1,700 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 $60,000

501-1,000 tires $85,000

more than 1,000 tires $240,000

Blended currently produces 140 vehicles per month.

Requirements

1.	What is the variable manufacturing cost per vehicle? (need answer) What is the fixed manufacturing cost per month? (need answer)
2.	Plot a graph for the variable manufacturing costs and a second for the fixed manufacturing costs per month. (need answer) How does the concept of relevant range relate to your graphs? (need answer)
3.	What is the total manufacturing cost of each vehicle if 90 vehicles are produced each month? (need answer) 215 vehicles? (need answer) How do you explain the differences in the manufacturing cost per unit? (need answer)