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, 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 soid to wholesalers in boxes of 24 tubes for $11 per box. Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $94,500 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 105.000 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-Off. Siven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes would be $200 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 30%. Required: 1. If Sitven 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 $2.00 per box that is shown above into its variable and fixed components to detive 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 105,000 boxes of tubes from the outside supplier? 4. Should Siven industries make or buy the tubes? 5. What is the maximum price that Silven shouid be willing to pay the outside supplier for a box of 24 tubes? 6. Instead of sales of 105,000 boxes of tubes, revised estimates show a sales volume of 131,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $46,000 per year to make the additional 26,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 131,000 boxes of tubes, what is the financial advantage (disadvantage) in total (hot per box) if Silven buys 131,000 boxes of tubes from the outside supplier? Given this new information, should Siliven Industives 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 $2.00 per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier? 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. Oif manufacturing costs per box will it be able to avoid? (Hint: You need to separate the manufacturing overhead of $200 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 105,000 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 105,000 boxes of tubes, revised estimates show a sales volume of 131,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $46,000 per year to make the additional 26,000 boxes of tubes Assuming that the outside supplier will not accept an order for less than 131,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 131,000 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 $2.00 per box. How many boxes of tubes should Silven make? How many boxes of tubes should is buy from the outside supplier? Complete this question by entering your answers in the tabs below. 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 avoldz (Hint: You need to separate the manufacturing overhead of $2.00 per box that is shown above into lits variable and fixnd components to derive the correct answer.) (Do not round intermediate calculations. Round your answer to 2 decimai 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 manufacturing overhead of $2.00 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 105,000 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 105,000 boxes of tubes, revised estimates show a sales volume of 131,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $46,000 per year to make the additional 26,000 boxes of tubes. Assuming that the outside supplief will not accept an order for less than 131,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 131,000 boxes of tubes from the outside supplier? Given this new information, should Silven industries make or buy the tubes? 7. Reler 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 $2.00 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 finandal advantage (disadvantage) per box of Chap-orf if silven buys its tubes from the outside supplier? (Do not round intermedate calculations. Roond your answer to 2 decimal places.) 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 30% Required: 1. If Silven buys its tubes from the outside supplier, how much of its own Chap-Oif manufacturing costs per box will it be able to avoid? (Hint You need to separate the manufacturing overhead of $2.00 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 Oif if Silven buys its tubes from the outside supplier? 3. What is the financial advantage (disadvantage) in total (not per box) if Silven buys 105.000 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 105,000 boxes of tubes, revised estimates show a sales volume of 131,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $46,000 per year to make the additional 26,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 131,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 131,000 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 $2.00 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) in total (not per box) if Siliven buys 105,000 boxes of tubes from the outside 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 $200 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 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 manufacturing overhead of $200 per box that is shown above into its variable and fixed components to derive the colrect answet) 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 financlal advantage (disadvantage) in total (not per box) if Silven buys 105,000 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 105,000 boxes of tubes, revised estimates show a sales volume of 131,000 boxes of tubes. At this higher sales volume. Silven would need to rent extra equipment at a cost of $46.000 per year to make the additional 26,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 131,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 131,000 boxes of tubes from the outside supplier? Given this new information, should Silven industries make or buy the tubes? 7. Refer to the dato in Requised 6 . Assume that the outside supplier will accept an order of any size for the tubes at a price of $2.00 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. Should silven Industries make or buy tha tubes? 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 $200 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 30% Required: 1. It 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 $200 per box that is shown above into its variable and fixed components to derive the correct ansiver) 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 financlal advantage (disadvantage) in total (not per box) if Silven buys 105,000 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 105,000 boxes of tubes, revised estimates show a sales volume of 131,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $46,000 per year to make the additional 26,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 131,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 131.000 boxes of tubes from the outside supplier? Given this new information, should Silven industries make of 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 $2.00 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 maximum price that silven should be willing to pay the outside suppller for a box of 24 tubes? (Do hot round intermediate calculations. Round your answer to 2 decimal places.) 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 manufacturing overhead of $2.00 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 Siliven buys 105,000 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 105,000 boxes of tubes, revised estimates show a sales volume of 131,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $46,000 per year to make the additional 26,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 131,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silien buys 131,000 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 $2.00 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 onswers in the tabs below. Instesd of sales of 105,000 boxes of tubes, revised estimates show a sales volume of 131,000 boxes of tubes. At this higher Tales volume, silven would need to rent oxtra equipment at a cost of $46,000 per year to make the additional 26,000 boxes of tubes. Assuming that the outside suppler will not accept an order for less than 131,000 boxes of tubes, what is the finandal advantage (disadvantage) in total (not per box) if Silven buys 131,000 boxes of tubes from the outside supplier? Given this new information, should silven Industries make or buy the tubes? would be $2.00 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 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 manufacturing overhead of $2.00 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 105.000 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 105,000 boxes of tubes, revised estimates show a sales volume of 131,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $46,000 per year to make the additional 26,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 131,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) is Silven buys 131,000 boxes of tubes from the outside supplier? Given this new information, should Siliven 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 fubes at a price of $200 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 $2.00 per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplior? (Round your intermediate calculations to 2 decimal places.)