Thompson Motors specializes in producing one specialty vehicle. It is called Turner and is styled to easily fit multiple surfboards in its back area and top-mounted storage racks. Thompson has the following manufacturing costs:

Plant management costs, $1,200,000 per year

Cost of leasing equipment, $1,300,000 per year

Workers wages, $700 per Surfer vehicle produced

Direct materials costs: Steel, $1,500 per Turner, Tires, $125 per tire, each Turner takes 5 tires (one spare).

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

0 500 tires $50,000

501 1,000 tires $74,500

More than 1,000 tires $200,000

Thompson currently produces 110 vehicles per month.

1. What is the variable manufacturing cost per vehicle?
2. What is the fixed manufacturing cost per month?
3. What is the total manufacturing cost of each vehicle if 100 vehicles are produced each month?
4. What is the increase in total manufacturing cost if 225 vehicle are produced each month?