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answer questions 1 through 7 please! diversgy in ocder to stablite sales throughout the year A nstural area for the coimpstyy to consider is the
answer questions 1 through 7 please!
diversgy in ocder to stablite sales throughout the year A nstural area for the coimpstyy to consider is the production of witeter iotions and crienme to prevent diry and chipped siat. one of the new products for this comting wertet. If the product is a swccest, hurther expormadi irifurure yests with be initibed. The product selected (culicd Crnpomy is at lip beim thet wil be sokd in a fpstick-type fube: The propuct wil besold to whalemalers in aroduce ilne plobuct. However, if 5103,500 charge for foe-d manutachuring ouerhead wit be ahsorbed by the product under fhe coimpary?s absorption cosirng system. Uring the estimated soles and produchort ot 115,000 bowes of Chap-om, the Aocourting Depatimert has develaped the fotiowithg mandifatiriac sost per box: The coets above relote to making both the tip a dim and the tube that contains it. As an aitermative to making the tubes for Ctap-orf. Siven has appronctied a suppliet to discuss the poss aliby of buntry the tubes. The purchase price os ihe supptierts empty tubes would be 5 t 90 per box of 24 tubes. If Silven trindstries stops making the fubes and buys them from the autside suppler, its direct labor a7d voriabie manutocturhg overheod costs per box of Chap-Orf would be reduced by 10 bh and ts direct materiak costs woukd be restuped by 25% Required: 1. If Sitven buys its buber from the outside supples how much of its own chsport manutachurtng costs per bcir will it be able to avold? (Hint: You need to seporate the manufacturing owernead of $2.20 per box that is shown above lato lts variable and fiked comporents to dertve the correct answar.) 2. What is the financial advantage dotasdvartagef per bok of chap-Off if 5 ilven buys lte tubes from the autside suppler? 3. What is the financial a thontage f distatvantagal ia totai hot per baxir sitven beys 1ts moo boves of thbes from the outside nuppier? 4. Should Sthen lindustries meke or biy the tubes? 5. Whot is the maximum price that Slven should be waling to pay the outside suppier for a bax or 24 tubes? 0. Instead of saies of 115,000 boxes of tubes, revised estimates shaw sales volume of 143,000 bowes of tubes. At this higher gales volume, 5 byen would need to rent extr an equyatient at a cost of 548,009 per year to make the oddlional 28 ,ooo boues of tubes Assurning that the outside supplier wil not ascept an ordet for less than f43,000 bowes of tubes. What ls trie finanelal adventage (disadvantage) in total (nat pet box) if Siven diys 143.000 bexes of tueks from the outside supalier? Given thls new information, should. Sinven ladustries makoe or buy the tubes? 7. Fefer to the data in ReqLired 0. Assume that the oursde supplier wall accept an order of amy size for the tubes of a price of $1 so per box. How many boues of tubes should Sthen malce? How many nowes of tubes should it ouy from the outside supalier? Complete this fuestion by entering your answers ln the tabs below. Refer to the dota In Roquired o. Asgume that the oceside supplier wit accept an erder of ary siae for the tubes ak a price of $1,50 per box. How mony boxes of tubes shoudd Sllven make? How many boxes of tubes sthould it bur from the outside supplier? (Rosind your intermedabe calculations be 2 decimal pracesi.) Step by Step Solution
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