Answered step by step
Verified Expert Solution
Question
1 Approved Answer
United Motors specializes in producing one specialty vehicle. It is called Surfer and is styled to easily fit multiple surfboards in its back area and
United 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. United has the following manufacturing costs: (Click the icon to view the manufacturing costs.) Requirements 1. What is the variable manufacturing cost per vehicle? What is the fixed manufacturing cost per month? 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 your graphs? Explain. 3. What is the total manufacturing cost of each vehicle if 90 vehicles are produced each month? 215 vehicles? How do you explain the difference in the manufacturing cost per unit? United currently produces 170 vehicles per month. Requirement 1. What is the variable manufacturing cost per vehicle? What is the fixed manufacturing cost per month? The variable cost per vehicle is - X Data Table Plant management costs, $1,992,000 per year Cost of leasing equipment, $1,800,000 per year Workers' wages, $900 per Surfer vehicle produced Direct materials costs: Steel, $1,500 per Surfer; Tires, $120 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 $ 70,000 501-1,000 tires $ 80,000 more than 1,000 tires $ 220,000 Print Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started