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

Plant management costs, 1,464,000 per year

Cost of leasing equipment 2.328,000 per year

Workers wages $700 per suffer vehicle produced

Direct material costs, Steel $1,500 per Surfer; Tires $130 per tire, each surfer take 5 tires (one spare) City license, which is charged monthly based on the numbers of tires used in production

0-500 tires $20,000

501-1000 tires $60,000

more than $1000 tires $160,000

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 100 vehicles are produced each month? 225 vehicles? vehicles? How do you explain the difference in the manufacturing cost per unit?