Sliven 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 uren 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-om) is a lip balm that will be sold ina lipstick type tube. The product will be sold to wholesalers in boxes of 24 tubes for $10 per box Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $115,500 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 165.000 boxes of Chap-off, the Accounting Department has developed the following manufacturing cost per box: Direct material Direct labor Manaf neturing overhead Total cont 54.70 3.00 2.10 $9.80 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-om, Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty 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 Chop-Off would be reduced by 10% and its direct materials costs would be reduced by 30% Required: 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 $210 per box that is shown above into its variable and components to Required: 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 $2.10 per box that is shown above into its variable and fixed components to dove the correct answer.) 2. What is the financial advantage (disadvantage) per box of Chap Offif Silven blys its tubes from the outside supplier? 3. What is the financial advantage (disadvantage) in total (not per box) if Silven buys 165,000 boxes of tubes from the outside supplier? 4. Should Silven Industries make or buy the tubes? 5. What is the maximum price that Siiven should be willing to pay the outside supplier for a box of 24 tubes? 6 Instead of sales of 165,000 boxes of tubes, revised estimates show a sales volume of 203,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $70,000 per year to make the additional 38,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 203,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) ir Silven buys 203,000 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. Reg 1 Req2 Reg 3 Reg4 Reg 5 Reg 6 Reg 7 Ir 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 $2.10 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) Show A Alda manufacturing costs per box of Chap-on Assuming that the outside supplier will not accept an order for less than 203,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) ir Silven buys 203,000 boxes of tubes from the outside supplier? Given this new information Should Silvon 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 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 ir Silven buys its tubes from the outside supplier? (Do not round intermediate calculations. Round your answer to 2 decimal places.) per box Assuming that the outside supplior will not accept on order for less than 203,000 boxes of tubes, what is the financial advantage disadvantage in total (not per box) ir Silven buys 203,000 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. Reg Reg 2 Rega Reg 4 Reg 5 Reg 6 Rea 7 What is the financial advantage (disadvantage in total (not per box) if silven buys 165,000 boxes of tubes from the outside supplier 5. What is the maximum pnce that Siven should be willing to pay the outside supplier for a box ot 24 tubes 6. Instead of sales of 165,000 boxes of tubes, revised estimates show a sales volume of 203,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $70,000 per year to make the additional 38,000 boxes of tubes Assuming that the outside supplier will not accept an order for less than 203.000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 203,000 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. Req1 Reg 2 Red 3 Req 4 Req5 Reg 6 Reg 7 What is the maximum price that Silven should be willing to pay the outside suppiler for a box of 24 tubes? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Mamut prio per box Assuming that the outside supplier will not accept an order for less than 203,000 boxes of tubes, what is the financial advantage (disadvantage in total (not per box) if Silver buys 203,000 boxes of tubes from the outside supplier? Given this new information thould 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. Regi Reg 2 Reg 3 Reg 4 Reg 5 Req6 Req7 Instead of sales of 165,000 boxes of tubes, revised estimates show a sales volume of 203,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $70,000 per year to make the additional 38,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 203,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 203,000 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? Assuming that the outside supplier will not accept an order for less than 203,000 borces of tubes, what is the financial advantage disadvantage) in total (not per box if Silven buys 203,000 boxes of tubes from the outside supplier? Given this new information should Silvan Industries make or buy the tubos? 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 the question by entering your answers in the tabs below Regi Rega Reg Reg Reg 5 Req6 Req7 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? (Round your intermediate calculations to 2 decimal places.) Number of boxes of tubes manufactured by Seven Number of boxen of tubes purchased from the outside supplier