Answer 1 and 2 please

Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to diversify 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 chapped skin. Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to After considerable research, a winter products line has been developed. However, Silven's president has decided to introduce only diversify 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 chapped skin. one of the new products for this coming winter. If the product is a success, further expansion in future years will be initiated. After considerable research, a winter products line has been developed. However, Silven's president has decided to introduce only 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 one of the new products for this coming winter. If the product is a success, further expansion in future years will be initiated. boxes of 24 tubes for $8 per box. Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $84,000 charge for fixed manufacturing overhead will be absorbed by the product under the company's absorption costing system. 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 $8 per box. Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $84,000 charge for fixed manufacturing overhead will be absorbed by the product under the Using the estimated sales and production of 105,000 boxes of Chap-Off, the Accounting Department has developed the following company's absorption costing system. manufacturing cost per box: Using the estimated sales and production of 105,000 boxes of Chap-Off, the Accounting Department has developed the following Direct material $ 3.80 manufacturing cost per box Direct labor 2.20 Manufacturing overhead 1.50 Total cost $ 7.50 Direct material $ 3.80 Direct labor 2. 20 Manufacturing overhead 1.50 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-Off, Total cost $ 7.50 Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes would be $1.40 per box of 24 tubes. If Silven Industries stops making the tubes and buys them from the outside supplier, its direct 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-Off, labor and variable manufacturing overhead costs per box of Chap-Off would be reduced by 10% and its direct materials costs would be Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes reduced by 20% would be $140 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 Required: reduced by 20%. 1. If 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 $1.50 per box that is shown above into its variable and fixed components to Required: derive the correct answer.) 1. If 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? 2. What is the financial advantage (disadvantage) per box of Chap-Off if Silven buys its tubes from the outside supplier? Hint: You need to separate the manufacturing overhead of $1.50 per box that is shown above into its variable and fixed components to 3. What is the financial advantage (disadvantage) in total (not per box) if Silven buys 105,000 boxes of tubes from the outside supplier? derive the correct answer.) 4. Should Silven Industries make or buy the tubes? 2. What is the financial advantage (disadvantage) per box of Chap-Off if Silven buys its tubes from the outside supplier? 5. What is the maximum price that Silven should be willing to pay the outside supplier for a box of 24 tubes? 3. What is the financial advantage (disadvantage) in total (not per box) if Silven buys 105,000 boxes of tubes from the outside supplier? 6. Instead of sales of 105,000 boxes of tubes, revised estimates show a sales volume of 126,000 boxes of tubes. At this higher sales 4. Should Silven Industries make or buy the tubes? volume, Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 21,000 boxes of tubes. 5. What is the maximum price that Silven should be willing to pay the outside supplier for a box of 24 tubes? Assuming that the outside supplier will not accept an order for less than 126,000 boxes of tubes, what is the financial advantage 6. Instead of sales of 105,000 boxes of tubes, revised estimates show a sales volume of 126,000 boxes of tubes. At this higher sales (disadvantage) in total (not per box) if Silven buys 126,000 boxes of tubes from the outside supplier? Given this new information, volume, Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 21,000 boxes of tubes. should Silven Industries make or buy the tubes? Assuming that the outside supplier will not accept an order for less than 126,000 boxes of tubes, what is the financial advantage 7. Refer to the data in Required 6. Assume that the outside supplier will accept an order of any size for the tubes at a price of $1.40 per (disadvantage) in total (not per box) if Silven buys 126,000 boxes of tubes from the outside supplier? Given this new information, box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier? should Silven Industries make or buy the tubes? 7. Refer to the data in Required 6. Assume that the outside supplier will accept an order of any size for the tubes at a price of $140 per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req 3 Req 4 Reg 5 Reg 6 Reg 7 Req 1 Req 2 Reg 3 Req 4 Req 5 Req 6 Req 7 If 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 $1.50 per box that is shown above into its variable and fixed components to derive the correct answer.) (Do not round intermediate calculations. Round your answer to 2 decimal What is the financial advantage (disadvantage) per box of Chap-Off if Silven buys its tubes from the outside supplier? (Do not round intermediate calculations. Round your answer to 2 decimal places.) places,) Show less A per box Avoidable manufacturing costs per box of Chap-OffSilven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to diversify 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 chapped skin. Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to After considerable research, a winter products line has been developed. However, Silven's president has decided to introduce only diversify 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 chapped skin. one of the new products for this coming winter. If the product is a success, further expansion in future years will be initiated. After considerable research, a winter products line has been developed. However, Silven's president has decided to introduce only 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 one of the new products for this coming winter. If the product is a success, further expansion in future years will be initiated. boxes of 24 tubes for $8 per box. Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $84,000 charge for fixed manufacturing overhead will be absorbed by the product under the company's absorption costing system. 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 $8 per box. Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $84,000 charge for fixed manufacturing overhead will be absorbed by the product under the Using the estimated sales and production of 105,000 boxes of Chap-Off, the Accounting Department has developed the following company's absorption costing system. manufacturing cost per box: Using the estimated sales and production of 105,000 boxes of Chap-Off, the Accounting Department has developed the following Direct material $ 3.80 manufacturing cost per box Direct labor 2.20 Manufacturing overhead 1.50 Total cost $ 7.50 Direct material $ 3.80 Direct labor 2. 20 Manufacturing overhead 1.50 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-Off, Total cost $ 7.50 Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes would be $1.40 per box of 24 tubes. If Silven Industries stops making the tubes and buys them from the outside supplier, its direct 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-Off, labor and variable manufacturing overhead costs per box of Chap-Off would be reduced by 10% and its direct materials costs would be Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes reduced by 20% would be $140 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 Required: reduced by 20%. 1. If 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 $1.50 per box that is shown above into its variable and fixed components to Required: derive the correct answer.) 1. If 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? 2. What is the financial advantage (disadvantage) per box of Chap-Off if Silven buys its tubes from the outside supplier? Hint: You need to separate the manufacturing overhead of $1.50 per box that is shown above into its variable and fixed components to 3. What is the financial advantage (disadvantage) in total (not per box) if Silven buys 105,000 boxes of tubes from the outside supplier? derive the correct answer.) 4. Should Silven Industries make or buy the tubes? 2. What is the financial advantage (disadvantage) per box of Chap-Off if Silven buys its tubes from the outside supplier? 5. What is the maximum price that Silven should be willing to pay the outside supplier for a box of 24 tubes? 3. What is the financial advantage (disadvantage) in total (not per box) if Silven buys 105,000 boxes of tubes from the outside supplier? 6. Instead of sales of 105,000 boxes of tubes, revised estimates show a sales volume of 126,000 boxes of tubes. At this higher sales 4. Should Silven Industries make or buy the tubes? volume, Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 21,000 boxes of tubes. 5. What is the maximum price that Silven should be willing to pay the outside supplier for a box of 24 tubes? Assuming that the outside supplier will not accept an order for less than 126,000 boxes of tubes, what is the financial advantage 6. Instead of sales of 105,000 boxes of tubes, revised estimates show a sales volume of 126,000 boxes of tubes. At this higher sales (disadvantage) in total (not per box) if Silven buys 126,000 boxes of tubes from the outside supplier? Given this new information, volume, Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 21,000 boxes of tubes. should Silven Industries make or buy the tubes? Assuming that the outside supplier will not accept an order for less than 126,000 boxes of tubes, what is the financial advantage 7. Refer to the data in Required 6. Assume that the outside supplier will accept an order of any size for the tubes at a price of $1.40 per (disadvantage) in total (not per box) if Silven buys 126,000 boxes of tubes from the outside supplier? Given this new information, box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier? should Silven Industries make or buy the tubes? 7. Refer to the data in Required 6. Assume that the outside supplier will accept an order of any size for the tubes at a price of $140 per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req 3 Req 4 Reg 5 Reg 6 Reg 7 Req 1 Req 2 Reg 3 Req 4 Req 5 Req 6 Req 7 If 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 $1.50 per box that is shown above into its variable and fixed components to derive the correct answer.) (Do not round intermediate calculations. Round your answer to 2 decimal What is the financial advantage (disadvantage) per box of Chap-Off if Silven buys its tubes from the outside supplier? (Do not round intermediate calculations. Round your answer to 2 decimal places.) places,) Show less A per box Avoidable manufacturing costs per box of Chap-Off