Den 13. Con Help Save Exit Che work 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 chapped skin After considerable research a winter products line has been developed. However Silver'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-om) 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 $11 per box Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $136,000 charge for food manufacturing overhead will be absorbed by the product under the company's absorption costing system. Using the estimated sales and production of 170,000 boxes of Chap of the Accounting Department has developed the following manufacturing cost per box Direct material Direct labor Manufacturing overhead Total cost 5.4.90 3.20 2.20 $ 10.30 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-On Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes would be $1.65 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 20% Pograd 10 poves Required: 1 Siven buys its tubes from the outside supplier how much of its own Chapo mtacturing costs per box will be able to avoid Hint You need to separate the manufacturing overhead of 52 20 per hox that is shown above into its variable and feed components to derive the correct answer 2. What is the financial advantage disadvantage) per box of Chap-On Silven buys its tubes from the outside supplier? 3. What is the financial advantage disadvantage in total (not per box Siven buys 170.000 boxes of tubes from the outside supplier? 4. Should Silven Industries make or buy the tubes? 5. What is the maximum price that Silven should be willing to pay the outside supplier for a box of 24 tubes? 6. Instead of sales of 170,000 boxes of tubes, revised estimates show a sales volume of 209,000 Does of tubes. Als higher sales volume. Stven would need to rent extra equipment at a cost of $59,000 per year to make the additional 39.000 bons of tubes Assuming that the outside supplier wil not accept an order for less than 200.000 bowes of tubes, what is the financial advantage (disadvantage in total not per box if Silven buys 209.000 boxes of tubes from the outside supplier Given this new information 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 5365 per box How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier lo Complete this question by entering your answers in the tabs below. Reg1 Reg2 Rega RA RS RO Ro 1 Silven buy its tubes from the outside supplier, how much of its own Chap-ort manufacturing cons per box will it bettete avoidint: You need to rate the manufacturing overhead of $2.20 per box that is shown above ime its variable and fied components to derive the correct answer. (Do not round Intermediate calculation. Round your answer to 2 decimal places Almanca per bot Chee Haga > MC WWW advantage - VOLJOP Boxit Siven buys 209,000 boxes of tubes from the outside supplier? Given this new information 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 $165 per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier? erences Complete this question by entering your answers in the tabs below. Reg1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg7 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.) per box Reg1 Rega ferences Huler to the data in Required 6. Assume that the outside supplier will accept an order of any site for the tubes a price of $165 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. Reg 1 Reg 2 Req3 Reg4 Reg 5 Reg 6 Reg 7 What is the financial advantage (disadvantage) in total (not per box) Silven buys 170,000 boxes of tubes from the outside supplier? mon ces 7. Refer to the data in Required 6. Assume that the outside supplier wil accept an order of any sire for the tubes at a price of $165 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. Reg 1 Reg 2 Reg 3 Reg 4 Req5 Reg 6 Reg What is the maximum price that Silven should be willing to pay the outside supplier for a box of 24 tubes? (Do not round intermediate calculations, Round your answer to 2 decimal places) Maximum prior per box Lidl Supplier wil accept an order of any size for the tubes at a price of $165 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. con Reg 1 Reg 2 Req3 Reg4 Reg 5 Rego Reg7 Instead of sales of 170,000 boxes of tubes, revised estimates show a sales volume of 209,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $59,000 per year to make the additional 39,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 209,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 209,000 boxes of tubes from the outside supplier? Given this new information, should Silven Industries make or buy the tubes? Show less Make or buy the boxes of tubes? Hea Hoy > WAT HUw many boxes of tubes should it buy from the outside supplier? SNO Pri Complete this question by entering your answers in the tabs below. rences Reg 1 Reg 2 Req3 Reg 4 Reg 5 Red Ril 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 $1.65 per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier? (Round your intermediate calculations to 2 decimal places.) Number of boxes of tubes manufactured by Silven Number of boxes of tubes purchased from the outside supplier