Blended 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. Blended has the following manufacturing costs: (Click the icon to view the manufacturing costs.) Blended currently produces 180 vehicles per month. C Determine the fixed manufacturing cost per month at each of the following capacity levels. 0-500 tires per month 501-1,000 tires per month more than 1,000 tires per month 1. 2. 3. 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. 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? Requirement 1. What is the variable manufacturing cost per vehicle? What is the fixed manufacturing cost per month? The variable cost per vehicle is $ 2,900 Data table Plant management costs, $2,124,000 per year Cost of leasing equipment, $2,196,000 per year Workers' wages, $700 per Surfer vehicle produced Direct materials costs: Steel, $1,500 per Surfer; Tires, $140 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 $ 40,000 X
Blended 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. Blended has the following manufacturing costs: (Click the icon to view the manufacturing costs.) Blended currently produces 180 vehicles per month. C Determine the fixed manufacturing cost per month at each of the following capacity levels. 0-500 tires per month 501-1,000 tires per month more than 1,000 tires per month 1. 2. 3. 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. 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? Requirement 1. What is the variable manufacturing cost per vehicle? What is the fixed manufacturing cost per month? The variable cost per vehicle is $ 2,900 Data table Plant management costs, $2,124,000 per year Cost of leasing equipment, $2,196,000 per year Workers' wages, $700 per Surfer vehicle produced Direct materials costs: Steel, $1,500 per Surfer; Tires, $140 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 $ 40,000 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Blended 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. Blended has the
following manufacturing costs:
(Click the icon to view the manufacturing costs.)
Blended currently produces 180 vehicles per month.
C
Determine the fixed manufacturing cost per month at each of the following capacity levels.
0-500 tires per month
501-1,000 tires per month
more than 1,000 tires per month
1.
2.
3.
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.
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?
Requirement 1. What is the variable manufacturing cost per vehicle? What is the fixed manufacturing cost per month?
The variable cost per vehicle is $ 2,900.
Data table
Plant management costs, $2,124,000 per year
Cost of leasing equipment, $2,196,000 per year
Workers' wages, $700 per Surfer vehicle produced
Direct materials costs: Steel, $1,500 per Surfer; Tires, $140 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
501-1,000 tires
more than 1,000 tires
$
$
40,000
85,000
210,000
X
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