Required:

If Silven buys its tubes from the outside supplier, how much of its own Chap$-$Off manufacturing costs per box will it avoid? $($Hint: You need to separate the manufacturing overhead of $$2\mathrm{.}20$ per box shown above into its variable and fixed components.$)$

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 $170,000$ boxes of tubes from the outside supplier?

Should Silven Industries make or buy the tubes?

What is the maximum price Silven should be willing to pay the outside supplier for a box of $24$ tubes?

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 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?

Refer to the data in Required $6.$ Assume the outside supplier will accept an order of any size for the tubes at a price of $$1\mathrm{.}65$ per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier?