Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the variable cost per vehicle? What is the fixed manufacturin cost per month at each of the followin capacity level? 0-500 tires per

image text in transcribed

What is the variable cost per vehicle?

What is the fixed manufacturin cost per month at each of the followin capacity level?

0-500 tires per month?

501-1000 tires per month?

more than 1000tires per month?

Combined 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. Combined 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 65 vehicles are produced each month? 190 vehicles? How do you explain the difference in the manufacturing cost per unit? Combined currently produces 140 vehicles per month. Requirement 1. What is the variable manufacturing cost per vehicle? What is the fixed manufacturing cost per month? X i Data Table The variable cost per vehicle is Plant management costs, $1,332,000 per year Cost of leasing equipment, $2,988,000 per year Workers' wages, $800 per Surfer vehicle produced Direct materials costs: Steel, $1,200 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 20,000 501-1,000 tires 60,000 more than 1,000 tires $ 240,000 Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Eco Management And Auditing A Practical Guide To EC Regulations

Authors: Joseph Tanega

1st Edition

1859070094, 978-1859070093

More Books

Students also viewed these Accounting questions

Question

In the network in figure Io = 4 103 -j1 j1 n 2/0 A 1n3 + 12/0v 1n

Answered: 1 week ago

Question

In Exercises find the indefinite integral. sech x tanh x dx

Answered: 1 week ago

Question

=+a. Discuss interesting features of this scatterplot.

Answered: 1 week ago