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 yeat 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 Oft) 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 $13 per box Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $87,500 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 boos of Chap of the Accounting Department has developed the following manufacturing cost per box Direct material Direct la Manufacturing overhead Total cost 5.5.60 4.00 2140 $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 cheap On 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 is direct Tabor and variable manufacturing ovethend costs per box of Chap Off would be reduced by 10% and its direct materiais costs would be reduced by 20% Required: 1. Stiven buys its tubes from the outside supplier how much of its own Chap-Off manufacturing costs per box will it be able to avoid 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 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 supplied 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. Se Reg 2 Rega 4 Reis Rego If Silven buys tubes from the outside supplies, how much of its own Chap Off manufacturing costs per box will it be able to avoid (Hint: You mwed to separate the manufacturing overhead of $2.40 per box that is shown above to its variable and fixed components to drive the correct answer to not own intermediate calculation Round you to decimal Dace Avoid mattuting costs port of Chap 011 Req2 > 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 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 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, Silver 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 on order of any size for the tubes at a price of $1.90 per box. How marvy bowers 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! Reg2 Rou Red 5 Rego Reg What is the Ninancial advantage (disadvantage) per box of Chapolri Silven buys its tubes from the outside, supplier (Do not round internet calculations und your answer to decimal place) per to Saved 4. Should Silven Industries make or buy the tubes? 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 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? 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 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 $1.90 per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier? 0:17:11 OOK Complete this question by entering your answers in the tabs below. Reg 1 2 Regs Reg4 Rog Rug Reg Should Silven Industries make or buy the tubes? Make Buy 1.1 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 suppiller? 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) 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? 59 Complete this question by entering your answers in the tabs below. Reg1 Rea 2 Rega Red Red Rego Reg 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 Hound your answer to decimal places) Masum DCO Iperbox Reg4 Rege> to derive the correct answer) 1.1 Silven buys its tubes from the outside supplier how much of its own Chap Off manufacturing costs per box will it be able to avold? (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-Off if Silven buys its tubes from the outside suppller? 3. What is the financial advantage (disadvantage) in total (not per box) if Silven buys 125,000 boxes of tubes from the outside supplier? 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, Silver 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) i 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? 45 Complete this question by entering your answers in the tabs below. Regt Ste 2 Reg4 fe Heg Instead of sales of 125,000 boxes of tubes, revised estimates show a sales volume of 155,000 boxes of tubes. At this higher les volume, Silver would need to rent extra equipment at a cost of $50,000 per you to make the additional 30,000 bikes 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 (data) in total (not per box) if Silon bus 155,000 boxes of tubes from the outside supplier Given the new information should silven Industries make or buy the tube Show less Mike or buy the boxes of 12 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 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 $1.90 per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier? 27 Complete this question by entering your answers in the tabs below. TICE Reg1 Red 2 Ree Reg 4 Reg 5 Rego Red 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 suppliec Round your intermediate calculations to 2 decimal places.) Number of boxes of tubes manufactured by Seven Number of boxes of tubes patchased from the outside supplet