Question
Plant management costs, $1,992,000 per year Cost of leasing equipment, $2,592,000 per year Workers' wages, $500 per Surfer vehicle produced Direct materials costs: Steel, $1,500
Plant management costs, $1,992,000 per year Cost of leasing equipment, $2,592,000 per year Workers' wages, $500 per Surfer vehicle produced Direct materials costs: Steel, $1,500 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 $ 65,000 more than 1,000 tires $ 190,000
currently produces 170 vehicles per month.
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
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
What is the variable manufacturing cost pervehicle? What is the fixed manufacturing cost permonth?
The variable cost per vehicle is
$
2,600
.
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
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