Coastal 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. Coastal has the following manufacturing costs:

Coastal 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, $2,196,000 per year Workers' wages, $500 per Surfer vehicle produced Direct materials costs: Steel $1,200 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 $70,000 more than 1,000 tires $210,000 Coastal currently produces 150 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 yourgraphs? (need answer)

3. What is the total manufacturing cost of each vehicle if 65 vehicles are produced each month? (need answer) 190 vehicles? (need answer) How do you explain the differences in the manufacturing cost per unit? (need answer)