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Combined Motors specializes in producing one specialty vehicle. It is called Surfer and is styled to easily fit multiple surfboards in its back area and

Combined 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. Combined has the following manufacturing costs

Plant management costs,$1,728,000 per year
Cost of leasing equipment, $2,592,000 per year
Workers' wages,$ 600 per Surfer vehicle produced
Direct materials costs: Steel $1,400 per Surfer; Tires,$ 100 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 comma 000$40,000

501-1,000 tires

$ 70 comma 000$70,000

more than 1,000 tires

$ 240 comma 000

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

Begin by plotting the variable manufacturing cost. Plot your graph using the following number of vehicles: 0 and 280 vehicles. 3.What is the total manufacturing cost of each vehicle if 80 vehicles are produced each month? 205 vehicles? How do you explain the difference in the manufacturing cost per unit?

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