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 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 Of 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 boxes of Chap-Off, the Accounting Department has developed the following manufacturing cost per box: 09:29 ed . Direct material Direct labor Manufacturing overhead Total coat $ 5.60 4.00 2.40 $12.00 nicos 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 $1.90 per box of 24 tubes. If Silven Industries stops making the tubes and buys them from the outside supplier, its direct tabor 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 Siven buys its tubes from the outside supplier how much of its own Chap-Off manufacturing costs per box will it be able to avoice (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 Chop-off if Silven buys its tubos 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? MacBook Air 2 0855 pod u . , Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes would be $1.90 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: if Silven buys its tubes from the outside suppller, 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 Siven 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 suppiler 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 $1.90 per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier? OOK Tint oces Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg4 Regs Reg 6 Reg 2 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 avold? (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 found intermediate calculations, Round your answer to 2 decimal places.) Avoidable manufacturing costs per box of Cheon Reg2 > e Assignment Homework Seved *HTE LOS QUE EU HO VUI ME VO QIU Mie UE ROLLUT HOS ILS ON DIIuveny Mie wes lui Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's emptyt would be $1.90 per box of 24 tubes. If Silven Industries stops making the tubes and buys them from the outside supplier, its labor and variable manufacturing overhead costs per box of Chap-Off would be reduced by 10% and its direct materials cost 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 (Hint: You need to separate the manufacturing overhead of $2.40 per box that is shown above into its variable and fixed co 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 outsid 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 hig volume, Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 30,000 boxes oft Assuming that the outside supplier will not accept an order for less than 155,000 boxes of tubes, what is the financial adva (disadvantage) In total (not per box) if Silven buys 155,000 boxes of tubes from the outside supplier? Given this new Inform 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 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 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.) per box He La Guve ICILE TORTY WE Womanu VIC LUVE OLULIS ILMS GI ONQUVC LOTY e Luwes II Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tut would be $1.90 per box of 24 tubes. If Silven Industries stops making the tubes and buys them from the outside supplier, Its d labor and variable manufacturing overhead costs per box of Chap-Off would be reduced by 10% and its direct materials costs 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 (Hint: You need to separate the manufacturing overhead of $2.40 per box that is shown above into its variable and fixed com 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 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 hig volume, Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 30,000 boxes of tu Assuming that the outside supplier will not accept an order for less than 155,000 boxes of tubes, what is the financial advan (disadvantage) In total (not per box) if Silven buys 155,000 boxes of tubes from the outside supplier? Given this new informa 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 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 1 Reg 3 Reg 4 Reg 5 Reg 7 Reg 6 What is the financial advantage (disadvantage) in total (not per box) i Silven buys 125,000 boxes of tubes from the outside supplier? HELUL GUVEICILE LUTION WULIT ME HVORT GHIU wwe MIELUITORIS IL DO OLEHLIVE WHIONY Me cues Silven has approached a supplier to discuss the possiblity of buying the tubes. The purchase price of the supplier's em would be $1.90 per box of 24 tubes. If Silven Industries stops making the tubes and buys them from the outside suppli labor and variable manufacturing overhead costs per box of Chap-Off would be reduced by 10% and its direct material 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 b (Hint You need to separate the manufacturing overhead of $2.40 per box that is shown above into its variable and fix 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 supplie 3. What is the financial advantage (disadvantage) in total (not per box) if Silven buys 125,000 boxes of tubes from the 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 th volume, Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 30,000 boxe Assuming that the outside supplier will not accept an order for less than 155,000 boxes of tubes, what is the financial (disadvantage) in total (not per box) if Silven buys 155,000 boxes of tubes from the outside supplier? Given this new in 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 box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplie Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4 Reg 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 box 3 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 avol (Hint: You need to separate the manufacturing overhead of $2.40 per box that is shown above into its variable and fixed componen 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 supplu 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 sale 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 $1.90 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 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? Pro 2 of 4 Next 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 (Hint: You need to separate the manufacturing overhead of $2.40 per box that is shown above into its variable and fixed comp 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 suppller? 3. What is the financial advantage (disadvantage) in total (not per box) If Silven buys 125,000 boxes of tubes from the outside su 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 volume, Silven would need to rent extra equipment at a cost of $50,000 per year to make the additional 30,000 boxes of tube Assuming that the outside supplier will not accept an order for less than 155,000 boxes of tubes, what is the financial advantag (disadvantage) in total (not per box) if Silven buys 155,000 boxes of tubes from the outside supplier? Given this new informatio 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 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 Regs Reg 6 Req 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? (Round your intermediate calculations to 2 decimal places) Number of boxes of tubes manufactured by Silven Number of boxes of tubes purchased from the outside supplier