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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 chapped skin After considerable research, a winter products line has been developed. However. Siven'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 $10 per box Because of excess capacity, no additional faed manufacturing overhead costs will be incurred to produce the product. However, a $115,500 charge for fed manufacturing overhead will be absorbed by the product under the company's absorption costing system Using the estimated sales and production of 165,000 boxes of Chop-Off, the Accounting Department has developed the following manufacturing cost per box Direct material Direct labor Manufacturing overhead Total cost 54.10 3.00 2.10 $9.80 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 Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes would be $2.00 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 30% Required: 1. If Silven buys its tubes from the outside supplier, how much of its own Chap Of manufacturing costs per box will it be able to avoid? (Hint You need to separate the manufacturing overhead of $210 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 Offif Silven buys its tubes from the outside supplier? 3. What is the financial advantage (disadvantage) in total (not per box) # Siven buys 165,000 boxes of 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? 6. Instead of sales of 165,000 boxes of tubes, revised estimates show a sales volume of 203,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $70,000 per year to make the additional 38,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 203,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) Silven buys 203,000 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 $2.00 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 Reg 4 Reg 5 Reco Reg If Seven buys its tubes from the outside supplier, how much of its own Chop-off manufacturing costs per box will it be able to avoid? (Hint: You need to separate the manufacturing overhead of $2.10 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 places.) Avoidabile manufacturing costs per box of Chap-on re Roq 2 > 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-om) is a lip balm that will be sold in a lipstick-type tube. The product will be sold to wholesalers in baxes of 24 tubes for $10 per box Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $115,500 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 165,000 boxes of Chap-Off the Accounting Department has developed the following manufacturing cost per box Direct material Direct labor Manufacturing overhead Total cost $4.70 3.00 2.10 $9.80 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 Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes would be $2.00 per box of 24 tubes. If Silven Industries stops making the tubes and buys them from the outside supplier, its direct tabor and variable manufacturing overhead costs per box of Chap-Off would be reduced by 10% and its direct materials costs would be reduced by 30% Required: 1.17 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 $2.10 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 or Chap Off Silven buys its tubes from the outside supplier? 3. What is the financial advantage (disadvantage) in total (not per bow if Silver buys 165,000 boxes of 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? 6. Instead of sales of 165,000 boxes of tubes, revised estimates show a sales volume of 203,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $70,000 per year to make the additional 38,000 boxes of tubes Assuming that the outside supplier will not accept an order for less than 203,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 203,000 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 $2.00 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 2 Reg4 Reg 5 Req6 Reg 2 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 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, 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 $10 per box Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $115,500 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 165,000 boxes of Chap-Off the Accounting Department has developed the following manufacturing cost per box Direct material Direct labor Manufacturing overhead Total cost $4.70 3.00 2.10 $9.50 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 Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes would be $2.00 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 30% Required: 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 $2.10 per box that is shown above into its variable and foed components to derive the correct answer) 2. What is the financial advantage (disadvantage) per box of Chap Of if Silven buys its tubes from the outside supplier? 3. What is the financial advantage (disadvantage) in total (not per box) ir Silven buys 165,000 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 165,000 boxes of tubes, revised estimates show a sales volume of 203,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $70,000 per year to make the additional 38,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 203.000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 203,000 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 $2.00 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 5 Reg 1 Reg 2 Req3 Reg 4 Reg 6 Req? What is the financial advantage (disadvantage) in total (not per box) of Silven buys 165,000 boxes of tubes from the outside supplier? en Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to ersity in order to stabilize sales throughout the year. A natural area for the company to consider is the production of winter lotions creams to prevent dry and chopped skin ear considerable research, a winter products line has been developed. However, Silven's president has decided to introduce only of the new products for this coming winter. If the product is a success, further expansion in future years will be initiated e 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 kes of 24 tubes for $10 per box Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to duce the product. However , a $115,500 charge for fixed manufacturing overhead will be absorbed by the product under the mpany's absorption costing system. #ng the estimated sales and production of 165,000 boxes of Chop-Off, the Accounting Department has developed the following nufacturing cost per box Direct material Direct labor Manufacturing overhead Total cost $4.70 3.00 2.10 59.80 le 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 ven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes uld be $2.00 per box of 24 tubes. If Silven Industries stops making the tubes and buys them from the outside supplier, its direct or and variable manufacturing overhead costs per box of Chap-off would be reduced by 10% and its direct materials costs would be duced by 30% equired: f 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 $2.10 per box that is shown above into its variable and fixed components to What is the financial advantage disadvantage) per box of Chap-off if Silven buys its tubes from the outside supplier? What is the financial advantage disadvantage) in total (not per box) if Silven buys 165,000 boxes of tubes from the outside supplier? What is the maximum price that Silven should be willing to pay the outside supplier for a box of 24 tubes? Instead of sales of 165,000 boxes of tubes, revised estimates show a sales volume of 203,000 boxes of tubes. At this higher sales lume. Silven would need to rent extra equipment at a cost of $70,000 per year to make the additional 38,000 boxes of tubes ssuming that the outside supplier will not accept an order for less than 203,000 boxes of tubes, what is the financial advantage sadvantage) in total (not per box) if Silven buys 203,000 boxes of tubes from the outside supplier? Given this new information, mould Silven Industries make or buy the tubes? 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 $2.00 per ox. 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 5 Req6 Req? Req2 Req3 Reg 4 Should Silven Industries make or buy the tubes? Make 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, 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 $10 per box. Because of excess capacity, no additional foxed manufacturing overhead costs will be incurred to produce the product. However, a $115.500 charge for fived manufacturing overhead will be absorbed by the product under the company's absorption costing system Using the estimated sales and production of 165,000 boxes of Chap-Off, the Accounting Department has developed the following manufacturing cost per box Direct material Direct labor Manufacturing overhead Total cost 94.70 3.00 2.10 59.80 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 Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes would be $2.00 per box of 24 tubes. If Silven Industries stops making the tubes and buys them from the outside suppler, is direct Jabor and variable manufacturing overhead costs per box of Chap-off would be reduced by 10% and its direct materials costs would be reduced by 30% Required: 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 $2.10 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) If Silven buys 165,000 boxes of tubes from the outside suppler? 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 165,000 boxes of tubes, revised estimates show a sales volume of 203,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $70,000 per year to make the additional 38,000 boxes of tubes Assuming that the outside supplier will not accept an order for less than 203.000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box if Siven buys 203,000 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 site for the tubes at a price of $200 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 Reg2 Reg Red 4 Reg 5 Reg 6 Reg 2 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 price per box 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 pri 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 Reg 4 Reg 5 Reg 6 Reg? Instead of sales of 165,000 boxes of tubes, revised estimates show a sales volume of 203,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $70,000 per year to make the additional 38,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 203,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) i Silven buys 203,000 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? 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 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 $10 per bok Because of excess capacity, no additional foved manufacturing overhead costs will be incurred to produce the product . However, a $115,500 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 165,000 boxes of Chap Om, the Accounting Department has developed the following manufacturing cost per box Direct material Direct labor Manufacturing overhead Total coat 54.90 3.00 2.10 59.00 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 $200 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 30% Required: 1. of Silven buys its tubes from the outside supplier how much of its own Chap Off manufacturing costs per box wil it be able to avoid? (Hint: You need to separate the manufacturing overhead of $2.10 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 Offif Silven buys ts tubes from the outside supplier? 3. What is the financial advantage (disadvantage) in total (not per box) i Silven buys 165,000 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 165,000 boxes of tubes, revised estimates show a sales volume of 203,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $70,000 per year to make the additional 38,000 boxes of tubes Assuming that the outside supplier will not accept an order for less than 203,000 boxes of tubes, what is the financial advantage (disadvantage) In total (not per box) if Siven buys 203,000 boxes of tubes from the outside supplier? Given this new information 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 $2.00 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 Req2 Reg 3 Reg4 Reqs Reg 6 Reg 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 $2.00 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 fudes manufactured by Siven Number of bones of tubes purchased from the outside supplier
