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Total F Seaside Motors specializes in producing one specialty vehicle. It is called Surfer and is styled to easily fit multiple surfboards in its
Total F 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 2. 1. 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. 3. 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? $200,000+ $100,000+ $0+ 0 500 1,000,500 Tires Used in Production Total F $200,000+ $100,000 $0 0 500 1,000,500 Tires Used in Production Total F $200,000+ $100,000 $0+ 0 500 1,000,500 Tires Used in Production Total Fixe How does the concept of relevant range relate to your graphs? Explain. The concept of relevant range is potentially relevant for both graphs. The question does place restrictions on the unit variable costs. The relevant range for the total fixed costs is from 0 to 500 tires; 501 to 1000 tires; more than 1000 tires, and so on. The total fixed costs are the same amount for all of the ranges. $300,000+ $200,000+ $100,000 $0+ 0 500 1,000 1,50 Tires Used in Product
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