Using the estimated sales and production of $100,000$ boxes of Chap$-$Off, the Accounting Department has developed the following manufacturing cost per box:Direct materialDirect laborManufacturing overheadTotal cost$$3\mathrm{.}602\mathrm{.}001\mathrm{.}40$$$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 $$1\mathrm{.}35$ per box of $24$ tubes. If Silven Industries stops making the tubes and buys them from the outside supplier, its direct labor and variable manufacturing overhead costs per box of Chap$-$Off would be reduced by $10\%$ and its direct materials costs would be reduced by $25\%.$Required:$1.$ If Silven buys its tubes from the outside supplier, how much of its own Chap$-$Off manufacturing costs per box will it be able to avoid?$($Hint: You need to separate the manufacturing overhead of $$1\mathrm{.}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 $100,000$ boxes of tubes from the outside supplier?$4.$ Should Silven Industries make or buy the tubes?Page $6125.$ What is the maximum price that Silven should be willing to pay the outside supplier for a box of $24$ tubes? Explain$6.$ 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 $$40,000$ per year to make the additional $20,000$ boxes of tubes. Assuming that the outside supplier will not accept an order for less than $120,000$ boxes, what is the financial advantage $($disadvantage$)$ in total $($not per box$)$ if Silven buys $120,000$ boxes of tubes from the outside supplier? Given this new information, should Silven Industries make or buy the tubes?$7.$ Refer to the data in $(6)$ above. Assume that the outside supplier will accept an order of any size for the tubes at a price of $$1\mathrm{.}35$ per box How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier?$8.$ What qualitative factors should Silven Industries consider in determining whether they should make or buy the tubes?