Motors specializes in producing one specialty vehicle. It is called Surfer and is styled to easily fit multiple surfboards in its back area andtop-mounted storage racks.

SeashoreSeashore has the following manufacturing costs:

SeashoreSeashore currently produces180 vehicles per month.

1.

What is the variable manufacturing cost pervehicle? 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.
3.	What is the total manufacturing cost of each vehicle if 95 vehicles are produced each month? 220 vehicles? How do you explain the difference in the manufacturing cost per unit?

Data Table Plant management costs, $1,728,000 per year Cost of leasing equipment, $2,988,000 per year Workers' wages, $700 per Surfer vehicle produced Direct materials costs: Steel, $1,300 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: $30,000 500 tires 501-1,000 tires $65,000 $210,000 more than 1,000 tires Print Done