Seaside 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. Seaside has the following manufacturingcosts:Plant management costs,per year

Cost of leasing equipment,per year

Workers' wages,per Surfer vehicle produced

Direct materials costs: Steel,per Surfer; Tires,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

$65,000

more than 1,000 tires

$230,000

Seaside currently produces 190 vehicles per month.

1.

What is the variable manufacturing cost pervehicle? What is the fixed manufacturing cost permonth?

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 yourgraphs? Explain.

3.

What is the total manufacturing cost of each vehicle if 65 vehicles are produced eachmonth? 190 vehicles? How do you explain the difference in the manufacturing cost perunit?