Seaside 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. Seaside has the following manufacturing costs:

$($Click the icon to view the manufacturing costs.$)$

Seaside currently produces $220$ vehicles per month.

Requirements

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

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.

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?

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

The variable cost per vehicle is

Data table

Plant management costs, $$1,464,000$ per year

Cost of leasing equipment, $$2,724,000$ per year

Workers' wages, $$800$ per Surfer vehicle produced

Direct materials costs: Steel, $$1,500$ per Surfer; Tires, $$140$ per tire, each Surfer takes $5$ tires $($one spare$)$

City license, which is charged monthly based on the number of tires used in production:

$\backslash$table$[[0-500$ tires,$$,40,000],[501-1,000$ tires $,$$$,60,000],[$

Seaside 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. Seaside has the following manufacturing costs:

$($Click the icon to view the manufacturing costs.$)$

Seaside currently produces $220$ vehicles per month.

Requirements

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

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.

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?

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

The variable cost per vehicle ismore than $1,000$ tires,$$,180,000]]$