Question
X) Company specializes in producing one specialty vehicle. It is called GTX. (X) Company has the following manufacturing costs: Plant management costs, $(Inter your student
X) Company specializes in producing one specialty vehicle. It is called GTX. (X) Company has the following manufacturing costs: Plant management costs, $(Inter your student number) per year. Cost of leasing equipment, $1,932,000 per year. Workers wages, $800 per GTX vehicle produced. Direct materials costs: Steel, $(????)*** per GTX vehicle produced; Tires, $150 per tire, each GTX takes 5 tires (one spare). City license, which is charged monthly based on the number of tires used in production: 0500 tires $ 40,040 5011,000 tires $ 65,000 more than 1,000 tires $249,870 (X) Company currently produces 170 vehicles per month. Using the information above, answer the following five questions: *** Enter the first four digits "from the right" of your student number instead of the question marks. For example, if your student number is 0193192, then enter the number 3192. <- Use This number Q1: What is the variable manufacturing cost per vehicle? Q2: What is the fixed manufacturing cost per month? Q3: What is the total manufacturing cost of each vehicle if 80 vehicles are produced each month? Q4: What is the total manufacturing cost of each vehicle if 205 vehicles are produced each month? Q5: How do you explain the difference in the manufacturing cost per unit in Q4 & Q5?
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