please answer all 8 questions and show work as well!

PROBLEM 13-23 Make or Buy Decision 5 LO13-3 Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repelients, 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. 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 wall be initiated. The product selected (called Chap-Ofi) is a lip balm that will be sold in a lipsticktype tube. The product will be sold to wholesalers in boxes of 24 tubes for $8 per box. Beceuse of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $90,000 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 100,000 boxes of Chap-OAt, the Accounting Department has developed the following manufacturing cost per box: The costs above relate to making both the isy balm and the tube that contains it. As an alternative to making the tubes for Chap-Oft, Silven has approached a supplier to dircuss the possibility of buying the tubes. The parchase price of the supglier's empty tubes would be $1.35 per box of 24 tabes. If Silven lndustries stops making the tabes and buys them from the outride supplier, its direct labor and variable menufacturing overhead corts per ber of Chap-Of would be reduced by 10% and its direct materials costs would be reduced by 25%. Required: 1. If Silven buys its tubes from the outside supplier, how much of its own Chap-Of manufacturing coste per bex will it be able to avoid? (Hint: You need to separate the manufuctaring overhead of $1.40 per box that is shown above into its vanabie and fived components to derive the correct enrwes) 2. What is the financial advantage (disadvantage) per bor of Chap-OrI if Siven buys its tubes from the ourside supp\$er? 3. What is the financial advantage (disedvantage) in total (not per box) if Silven buys 100,000 boxes of tabes from the cutside supplied? 4. Should Siven Indurtries make or bay the tubes? Pxy=612 5. What is the maximm price that Silven chould be willing to pay the outside supplier for 4 bax of 24 tubes? Explain 6. Instead of sales of 100,000 bares, revised estimates show \& sales volume of 120,000 bowes. At this higher sales volume, Silven would need to rent estre equipment at a cost of $40,000 per year to make the additional 20,000 boves of tubes. Astuming that the outride supplier will not accept an order for less than 120,000 boses, what is the financial advantage (disadvantege) in total (not per box) if Silven bugs 120,000 boxes of tubes from the outside supptier? Given this nes information, should Silven Indurtries make or bay the tubes? 7. Refer to the data in (6) above. Asrume that the outride supplier will accept an order of any size for the rubes at a price of $1.35 per bor Hew many bowes of tubes abould Silven make? How many boses of tubes ahould it boy from the outeide sapgtien? 1. What qualitative fattors steoud Siven ledustries contider in determining whether they ahould male or bay the tubes