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all parts are for the same dataset, thanks Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has

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Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to diversity in order to stabilize sales throughout the year. A natural area for the company to consider is the production of winter lotions and creams to prevent dry and chopped skin. After considerable research, a winter products line has been developed. However, Silven's president has decided to introduce only one of the new products for this coming winter. If the product is a success, further expansion in future years will be initiated. The product selected (called Chap-Off) is a lip balm that will be sold in a lipstick type tube. The product will be sold to wholesalers in boxes of 24 tubes for $12 per box Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However , a $103,500 charge for fixed manufacturing overhead will be absorbed by the product under the company's absorption costing system Using the estimated sales and production of 115,000 boxes of Chap-Off the Accounting Department has developed the following manufacturing cost per box 123 d Direct material Direct labor Manufacturing overhead Total cost $ 5.20 3.60 2.20 $11.00 The costs above relate to making both the lip balm and the tube that contains it. As an alternative to making the tubes for Chap Om, Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes would be $190 per box of 24 tubes. If Silven Industries stops making the tubes and buys them from the outside supplier, its direct labor and variable manufacturing overhead costs per box of Chap Off would be reduced by 10% and its direct materials costs would be reduced by 25% Required: 1.1 Silven buys its tubes from the outside supplier, how much of its own Chap-Off manufacturing costs per box will it be able to avoid? Hint You need to separate the manufacturing overhead of $2.20 per box that is shown above into its variable and fixed components to derive the correct answer) 2. What is the financial advantage (disadvantage) per box of Chap Off if Silven buys its tubes from the outside supplier? 3. What is the financial advantage (disadvantage) in total (not per box) i Silven buys 115,000 boxes of tubes from the outside supplier? 5. What is the maximum price that Siven should be willing to pay the outside supplier for a box of 24 tubes? 6 Instead of calenf 115.00 hores ftuar

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