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 Chop-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 513 per box Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a 587,500 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 125,000 boxes of Chop-Off the Accounting Department has developed the following manufacturing cost per box Direct material Direct labor Manufacturing overhead Total cost $ 5.60 4.00 2.40 $12.00 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-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 $190 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 20% 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 $240 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) if Silven buys 125,000 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 125,000 boxes of tubes, revised estimates show a sales volume of 155,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 30,000 boxes of tubes Assuming that the outside supplier will not accept an order for less than 155.000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 155,000 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 $190 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 3 Reg 4 Reg 5 Reg 6 Reg 7 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 $2.40 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.) Avoidable manufacturing costs per box of Chap-Off Reg 2 > Required: 1. If Silven buys its tubes from the outside supplier, how much of its own Chap-Off manufacturing costs per box will be able to avoid Hint You need to separate the manufacturing overhead of $2.40 per box that is shown above into its variable and fixed components 2. What is the financial advantage (disadvantage) per box of Chap Oy Silven buys its tubes from the outside supplier? 3. What is the financial advantage disadvantage) in total (not per bow of Silven buys 125.000 boxes of tubes from the outside supplier? 4. Should Silven Industries moke 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 125.000 boxes of tubes, revised estimates show a sales volume of 155.000 boxes of tubes. At this higher sales volume. Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 30,000 boxes of tubes Assuming that the outside supplier will not accept an order for less than 155,000 boxes of tubes, what is the financial advantage dimadvantage) In total (not per box if Silven buys 155.000 boxes of tubes from the outside supplier? Given this new information should Silven Industries make or buy the tubes? 7 Refer to the doto in Required 6. Assume that the outside suppler will accept an order of any size for the tubes at a price of $190 per box How many boxes of tubes should Siven 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 Res Rea Reg 4 Red 5 Rea Reg What is the financial advantage (disadvantage) per box of Chap Offif Silven buys its tubes from the outside supplier (Do not round intermediate calculations. Round your answer to 2 decimal places) per box Required: 1. If Silven buys its tubes from the outside supplier, how much of its own Chap Off manufacturing costs per box will be able to avoid (Hint. You need to separate the manufacturing overhead of $2.40 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 buyt its tubes from the outside supplier? 3. What is the financial advantage (disadvantage) in total (not per box) of Silven buys 125,000 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 125.000 boxes of tubes, revised estimates show a sales volume of 155.000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 30.000 boxes of tubes Assuming that the outside supplier will not accept an order for less than 155,000 boxes of tubes, what is the financial advantage (disadvantage in total (not per box if Silven buy: 155,000 bees of tubes from the outside suppliet? 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 se for the tubes at a price of $190 per box How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the cutside supplier? Complete this question by entering your answers in the tabs below. Rea 1 Rea 2 Reg 4 Regs Rea Rec 7 What is the financial advantage (disadvantage) in total (not per box) if Silven buys 125,000 boxes of tubes from the outside supplier Required: 1 Silven buys its tubes from the outside supplier how much of its own Chap-Ott manufacturing costs per box will it be able to avoid? (HintYou need to separate the manufacturing overhead of $2.40 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 of Silven buys its tubes from the outside suppler? 3. What is the financial advantage (disadvantage) in total (not per box) if Silven buys 125,000 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 125,000 boxes of tubes revised estimates show a sales volume of 155,000 boxes of tuben At this higher sales volume, Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 30,000 boxes of tubes Assuming that the outside supplier will not accept an order for less than 155,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 155,000 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 et a price of S1 90 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 2 Reg 3 Reg 1 Regn Reg 6 Regs Red 7 Should Silven Industries make or buy the tubes? Make Buy 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 $2.40 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 125,000 boxes of tubes from the outside supplier? 4. Should Silven Industries make or buy the tubes? 5. What is the macmum price that Silven should be willing to pay the outside supplier for a box of 24 tubes? 6. Instead of sales of 125,000 boxes of tubes, revised estimates show a soles volume of 155,000 boxes of tubes. At this higher soles volume, Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 30,000 boxes of tubes Assuming that the outside supplier will not accept an order for less than 155.000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 155,000 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 S1.90 per box How many boxes of tubes should Silven moke? How many boxes of tubes should it buy from the outside supplier? Complete this question by entering your answers in the tabs below. Reg2 Reg 1 Reg 3 Reg 4 Nea 5 Reg 6 Reg 7 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 bax 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 $240 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) If Silven buys 125,000 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 125,000 boxes of tubes, revised estimates show a sales volume of 155,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 30,000 boxes of tubes Assuming that the outside supplier will not accept an order for less than 155.000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silver buys 155,000 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 $190 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 3 Reg 4 Reg 5 Reg 6 Reg Instead of sales of 125,000 boxes of tubes, revised estimates show a sales volume of 155,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 30,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 155,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 155,000 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? seve SU 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 $2.40 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 Of Silver buys its tubes from the outside supplier? 3. What is the financial advantage (disadvantage in total (not per box) if Silven buys 125.000 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 125.000 boxes of tubes revised estimates show a sales volume of 155,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 30,000 boxes of tubes Assuming that the outside supplier will not accept an order for less than 155,000 boxes of tubes, what is the financial advantage (disadvantage in total inot per box) if Silven buys 155,000 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 $190 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 Heg2 Ree Reg4 Reg 5 Rego 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 $1.90 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 tubes manufactured by Siven Number of bores of tubes purchased from the outside supplier