Silven Industries, which manufactures and sells a highly successful line of summerlotions and insect repellants has decided to diversify in order to stabalize 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 $$8$ per box. Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $$90,000$ 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 $100,000$ boxes of chap$-$off, the accounting department developed the following manufacturing cost per box: direct material $$3\mathrm{.}60,$ direct labor $$2\mathrm{.}00,$ manufacturing overhead $$1\mathrm{.}40,$ total cost $$7\mathrm{.}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 $$1\mathrm{.}35$ 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 cost would be decreased by $25\%.$ Required:

$1.$ Instead of sales of $100,000$ boxes, revised estimates show a sales volume of $120,000$ boxes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $40,000$ per year to make the additional $20,000$ boxes of tubes. Assuming that the outside supplier will not accept an order for less than $120,000$ boxes, what is the financial advantage $($disadvantage$)$ in total $($not per box$)$ if Silven buys $120,000$ boxes of tubes from the outside supplier? Given this info, should Silven make or buy the tubes?

$2.$ Refer to the data in the questions above. Assume that the outside suplier will accept an order of any size for the tubes at a price of $$1\mathrm{.}35$ per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy?