Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, 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, 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 $9 per box. Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $116.000 charge for foxed manufacturing overhead will be absorbed by the product under the company's absorption costing system. Using the estimated sales and production of 145,000 boxes of Chap-Off, the Accounting Department has developed the following manufacturing cost per box: 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 Orf. Silven has approached a supplier to discuss the possibility of buying the tubes. The purchose 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 supplief. 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 manufocturing overhead of $1.70 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 145,000 boxes of tubes from the outside supplier? 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? 0Hint You need to separate the manufacturing overhead of $1.70 per box that is shown above into its variable and foxed 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 145,000 boxes of tubes from the outside supplier? 4. Should Siven industries make or buy the tubes? 5. What is the maximum price that Siven should be willing to pay the outside supplief for a box of 24 tubes? 6. Instead of sales of 145,000 boxes of tubes, revised estimates show a sales volume of 179,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $60,000 per year to make the addisional 34,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 179,000 boxes of tubes, What is the financial advantage (disadvantage) in total (not per box) if Silven buys 179,000 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 bowes of tubes should Silven make? How many boves of tubes should it buy from the outside supplier? Complete this question by entering your answers in the tabs below. If Siven buys its tubes from the outside supplier, how much of its own chap-Orf manufacturing costs per box will it be able to avold? (Aint: You need to separate the manufacturing overhead of $1.70 per box that is shown above into its variable and foxed components to derive the correct answer.) (Do not round intermediate calculations. Pound your answer to 2 decima! places.y 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 $1.70 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 145,000 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 145,000 boxes of tubes, revised estimates show a sales volume of 179,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $60,000 per year to make the additional 34,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 179,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 179,000 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 $1.65 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. 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.) 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 $1.70 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 145,000 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 145,000 boxes of tubes, revised estimates show a sales volume of 179,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $60,000 per year to make the additional 34,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 179,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 179,000 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 $1.65 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. What is the financial advantage Rog 3 supplier? htage) in total (not per box) if Silven buys 145,000 boxes of tubes from the outside (Hint: You need to separate the manufacturing overhead of $1.70 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 145,000 boxes of tubes from the outs 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 145,000 boxes of tubes, revised estimates show a sales volume of 179,000 boxes of tubes. At this h volume, Silven would need to rent extra equipment at a cost of $60,000 per year to make the additional 34,000 boxes 0 Assuming that the outside supplier will not accept an order for less than 179,000 boxes of tubes, what is the financial adv (disadvantage) in total (not per box) if Silven buys 179,000 boxes of tubes from the outside supplier? Given this new infor 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 pric 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. 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.) 1. If Silven buys its tubes from the outside supplier, how much of its own Chap-Off manufocturing costs por box will it be able to avoid? Hint You need to separate the manufacturing overheod of $170 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 Siven buys its tubes from the outside supplier? 3. What is the financial advantage (disadvantage) in total (not per box) if Siven buys 145,000 bomes of tubes from the outside supplier? 4. Should Siven industries make or buy the tubes? 5. What is the maximum price that Stven should be willing to pay the outside supplier for a box of 24 tubes? 6. Instead of sales of 145,000 boxes of tubes, revised estimates show a sales volume of 179,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $60,000 per year to make the additional 34,000 boxes of tubos. Assuming that the outside supplier will not accept an order for less than 179,000 bowes of tubes, what is the financial advantage Assuming that the outside supplier will not accept an order for less than 179,000 bowes or tubes, what is the financial advantage 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 51.65 per box. How many booxs of tubes should Siven make? How many bowes of tubes should it buy from the outside supplier? Complete this question by entering your answers in the tabs below. Instead of sales of 145,000 boxes of tubes, revised estimates show a sales volume of 179,000 boxes of tubes, At this higher sales volume, Silven would need to rent extra equipenent at a cost of $60,000 per year to make the additional 34,000 boxes of tubes. Assuming that the outside supplier will not acoept an order for less than 179,000 boxes of tubes, what is the finandal advantage (disadvantage) in total (not per box) if Silven buys 179,000 boxes of tubes from the outside supplier? Given this new information, should Silven Industries make or buy the tubes? 1. If Silven buys its tubes from the outside suppliec, how much of its own Chap-Off manufacturing costs per box will it be able to avoid? PHint: You need to separate the manufacturing overhead of $1,70 per box that is shown above into its variable and foxed components to derve the correct answer.) 2. What is the financial advantage (disadvantage) per box of Chap-Off if Stven buys its tubes from the outside supplier? 3. What is the financial advantage (disadvantage) in total (not per box) if Siven buys 145,000 boxes of tubes from the outside supplier? 4. Should Siven 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 145,000 boxes of tubes, revised estimates show a sales volume of 179.000 boxes of tubes, At this higher sales. volume, Silven would need to rent extra equipment at a cost of $60,000 per year to make the additional 34,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 179,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Siven buys 179,000 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 $1,65 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. 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.)