Silven Industries, which manufactures and cells a highly succesful line of cummer lotions and insect repellente, has decided to divoruty in order to stabilizo enles throughout the your A natural area for the company to consider is the production of winter lotions and creams to provont dry and chopped skin After considerablo rotoarch, a winter products line has been developed. However, Silvan's president has decided to introduce only one of the new products for this coming winter if the product is a succot, further expansion in futuro years will be initiated The product colected (called Chap Off) is a lip balm that will be sold in a lipstick typo tubo The product will be cold to wholesalors in boxes of 24 tubes for in per box Bocause of excoas capacity, no additional fixed manufacturing overhoed costs will be incurred to produco the product. However, a 180.000 charge for fixed manufacturing overhead will be absorbed by the product under the company's absorption costing system Using the estimated soles and production of 100.000 boxes of Chap Off, the Accounting Department has developed the following manufacturing cost per box Direct material Direct Labo Manufacturing overhead Total 14.00 1.00 100 19.50 The costs above relate to making both the lip balm and the tube that contains it. As an alternative to making the tubos for Chap Off, Silven has approached o cupplier to discuss the possibility of buying tho tuboo Tho purchase price of tho cuppliore ampty tubes would be $170 per box of 24 tubes i Silvon Industries stops making the tubes and buy them from the outside Gupplier, is direct labor and vanobio manufacturing overhead costs por box of Chap-Off would bo reduced by 10 and its direct materials costs would be reduced by 25% Required of Siven buys ta tubes from the outside supplier how much of its own Chap Off manufacturing costs por box will it be able to avoid? (Hint You need to separate the manufacturing overhead of $190 per box that is shown above into its variable and fixed components to derive the correct answe 2. What is the financial advantage disadvantaga) per box of Chap-Off if Silven buys its tubes from the outsido suppllor? 3 Wat is the financial advantage (disadvantago) in total (not per box if Silven buys 100,000 boxes of tubos from the outside supplier? 4 Should Silvon Industriou make or buy tho tubes 5. What is the maximum price that Silven should be willing to pay the outside supplier for a box of 24 tubes? 6 Instond of sales of 100,000 boxes of tubes, revised estimates shows sales volume of 125.000 boxes of tubes. At this higher sales volume, San would need to rent extra equipment at a cost of $45,000 per year to make the additional 25,000 boxes of tubes Asuming that the outside supplier will not accept an order for less than 125,000 boxes of tubes, what is the financial advantage avantage to total not par box if Silver buy. 125,000 boxos of tubes from the outsido supplier Glven this new information, should Silver Industries make or buy the tubes 7 Refer to the data in bove. Assume that the outside suporter will accept an order of any size for the tubos at a price of $170 por Do How many one of tubes could Silvan make How many bones of tubes should it buy from the outside cupplier