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Plant management costs, $1,992,000 per year Cost of leasing equipment, $2,856,000 per year Workers' wages, $600 per Surfer vehicle produced Direct materials costs: Steel, $1,700

Plant management costs,

$1,992,000

per year

Cost of leasing equipment,

$2,856,000

per year

Workers' wages,

$600

per Surfer vehicle produced

Direct materials costs: Steel,

$1,700

per Surfer; Tires,

$150

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 $40,000
501-1,000 tires $60,000
more than 1,000 tires $230,000

What is the variable manufacturing cost per vehicle? What is the fixed manufacturing cost per month?

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