Using the estimated sales and production of 100,000 boxes of Chap-ff, the Accounting Department has developed the ollwing manufacturing cost per box: Direct material Direct labor $3.60 2.00 1.40 $7.00 turing overhead 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 suppliers would be $1.35 per box of 24 tubes. If Silven Industries stops makin 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%. empty tubes g the tubes and buys them from the outside supplier, its direct 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 $1.40 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? 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 100,000 boxes of tubes, revised estimates show a sales volume of 120,000 boxes of tubes. At this higher sales uld 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 of tubes, 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 $1.35 per 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. Req 1 Required: Its tubes from the outside suppler, how much of Its own Chap-Off manufacturing costs per box will It be able to a ufacturing overhead of $1.40 per box that is shown above Into its variable and fixed compon (Hint: You need to separate the man derive the correct answer) 2. What is the financial advantage (disadvantage) per box of Chap-Off If Silven buys its tubes from the outside suppliler? 3. What is the 4. Should Silven Industries make or buy the tubes? 5. What is th 6. Instead of sales of 100,000 boxes of tubes, revised estimates show a sales volume of 120,000 boxes of tubes. At this higher volume, Silven would need to rent extra equipment at Assuming that the outside supplier will not accept an order for less than 120,000 boxes of tubes, what is the financial advanta (disadvantage) in total (not per box) if Silven buys 120,000 boxes of tubes from the outside supplier? Given this new informatio Silven Industries make or buy the tubes? . 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 $t financial advantage (disadvantage) in total (not per box) If Silven buys 100,000 boxes of tubes from the outside su e maximum price that Silven should be willing to pay the outside supplier for a box of 24 tubes? a cost of $40,000 per year to make the additional 20,000 boxes of tube 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 Req 7 Req 6 Req 5 Req 4 Req 3 Req 2 Req 1 What is the financial advantage (disadvantage) in total (not per box) if Silven buys 100,000 boxes of tubes from the outside supplier? Req 2 derlve the correct answer) 2. What Is the financial advantage (disadvantage) per box of Chap-Off If Sliven buys Its tubes from the outside supplier? 3. What is the financial advantage (disadvantage) in total (not per box) if Slven buys 100,000 boxes of tubes from the outsi 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 100,000 boxes of tubes, revised estimates show a sales volume of 120,000 boxes of tubes. At this hig volume. Silven would need to rent extra equipment at a cost of $40,000 per year to make the additional 20,000 boxes of Assuming that the o (disadvantage) in total (not per box) if Silven buys 120,000 boxes of tubes from the outside supplier? Given this new inform Silven Industries make or buy the tubes? 7 Refer to t box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier? ide supplier will n ot accept an order for less uts of tubes, what is the f the data in (6) above. Assume that the outside supplier will accept an order of any size for the tubes at a price complete this question by entering your answers in the tabs below. Req 6 Req 7 Req 5 Req 3 Req 4 Req 1 Req 2 What is the maximum price that Silven should be willing to pay the outside supplir for a box of 24 tubes? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) per box Req8 K Req 4 2. What is the financial advantage (d 3. What is the financial advantage (disadvantage) in total (not per box) If Silven buys 100,000 boxes of tubes from the outside sup 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 100,000 boxes of tubes, revised estimates show a sales volume of 120,000 boxes of tubes. At this higher s 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 of tubes, what is the financial ntage) per box of Chap-Off If Silven buys its tubes from the outside supplier? (disadvantage) in total (not per box) If Silven buys 120,000 boxes of tubes from the outside supplier? Given this new information 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 box. How many boxes of tubes should Siliven make? How many boxes of tubes should it buy from the outside supplier? Complete this question by entering your answers in the tabs below. Req 6 Req 5 Req 2 Req 4 Req 7 Req 3 Req 1 Instead of sales of 100,000 boxes of tubes, revised estimates show a sales volume of 120,000 boxes of tubes. 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 of tubes, 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? Show lessA Make or buy the boxes of tubes? Req7 > KReq 6 derive the correct answer) 2. What is the financial advantage (disadvantage) per box of Chap-Off If Siiven 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 s 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 100,000 boxes of tubes, revised estimates show a sales volume of 120,000 boxes of tubes. At this highe volume. Silven would need to rent extra equipment at a cost of $40,000 per year to make the add Assuming that the outside supplier will not accept an order for less than 120,000 boxes of tubes, what is the f disadvantage) in total (not per box) if Siliven buys 120,000 boxes of tubes from the outside supplier? Given this new informati 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 $ 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. Req 5 Req 6 Req 3 Req 4 eq 7 Req 2 Req 1 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 $1.35 per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier? Number of boxes of tubes manufactured by Silven Number of boxes of tubes purchased from the outside supplier Using the estimated sales and production of 100,000 boxes of Chap-ff, the Accounting Department has developed the ollwing manufacturing cost per box: Direct material Direct labor $3.60 2.00 1.40 $7.00 turing overhead 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 suppliers would be $1.35 per box of 24 tubes. If Silven Industries stops makin 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%. empty tubes g the tubes and buys them from the outside supplier, its direct 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 $1.40 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? 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 100,000 boxes of tubes, revised estimates show a sales volume of 120,000 boxes of tubes. At this higher sales uld 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 of tubes, 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 $1.35 per 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. Req 1 Required: Its tubes from the outside suppler, how much of Its own Chap-Off manufacturing costs per box will It be able to a ufacturing overhead of $1.40 per box that is shown above Into its variable and fixed compon (Hint: You need to separate the man derive the correct answer) 2. What is the financial advantage (disadvantage) per box of Chap-Off If Silven buys its tubes from the outside suppliler? 3. What is the 4. Should Silven Industries make or buy the tubes? 5. What is th 6. Instead of sales of 100,000 boxes of tubes, revised estimates show a sales volume of 120,000 boxes of tubes. At this higher volume, Silven would need to rent extra equipment at Assuming that the outside supplier will not accept an order for less than 120,000 boxes of tubes, what is the financial advanta (disadvantage) in total (not per box) if Silven buys 120,000 boxes of tubes from the outside supplier? Given this new informatio Silven Industries make or buy the tubes? . 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 $t financial advantage (disadvantage) in total (not per box) If Silven buys 100,000 boxes of tubes from the outside su e maximum price that Silven should be willing to pay the outside supplier for a box of 24 tubes? a cost of $40,000 per year to make the additional 20,000 boxes of tube 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 Req 7 Req 6 Req 5 Req 4 Req 3 Req 2 Req 1 What is the financial advantage (disadvantage) in total (not per box) if Silven buys 100,000 boxes of tubes from the outside supplier? Req 2 derlve the correct answer) 2. What Is the financial advantage (disadvantage) per box of Chap-Off If Sliven buys Its tubes from the outside supplier? 3. What is the financial advantage (disadvantage) in total (not per box) if Slven buys 100,000 boxes of tubes from the outsi 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 100,000 boxes of tubes, revised estimates show a sales volume of 120,000 boxes of tubes. At this hig volume. Silven would need to rent extra equipment at a cost of $40,000 per year to make the additional 20,000 boxes of Assuming that the o (disadvantage) in total (not per box) if Silven buys 120,000 boxes of tubes from the outside supplier? Given this new inform Silven Industries make or buy the tubes? 7 Refer to t box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier? ide supplier will n ot accept an order for less uts of tubes, what is the f the data in (6) above. Assume that the outside supplier will accept an order of any size for the tubes at a price complete this question by entering your answers in the tabs below. Req 6 Req 7 Req 5 Req 3 Req 4 Req 1 Req 2 What is the maximum price that Silven should be willing to pay the outside supplir for a box of 24 tubes? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) per box Req8 K Req 4 2. What is the financial advantage (d 3. What is the financial advantage (disadvantage) in total (not per box) If Silven buys 100,000 boxes of tubes from the outside sup 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 100,000 boxes of tubes, revised estimates show a sales volume of 120,000 boxes of tubes. At this higher s 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 of tubes, what is the financial ntage) per box of Chap-Off If Silven buys its tubes from the outside supplier? (disadvantage) in total (not per box) If Silven buys 120,000 boxes of tubes from the outside supplier? Given this new information 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 box. How many boxes of tubes should Siliven make? How many boxes of tubes should it buy from the outside supplier? Complete this question by entering your answers in the tabs below. Req 6 Req 5 Req 2 Req 4 Req 7 Req 3 Req 1 Instead of sales of 100,000 boxes of tubes, revised estimates show a sales volume of 120,000 boxes of tubes. 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 of tubes, 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? Show lessA Make or buy the boxes of tubes? Req7 > KReq 6 derive the correct answer) 2. What is the financial advantage (disadvantage) per box of Chap-Off If Siiven 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 s 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 100,000 boxes of tubes, revised estimates show a sales volume of 120,000 boxes of tubes. At this highe volume. Silven would need to rent extra equipment at a cost of $40,000 per year to make the add Assuming that the outside supplier will not accept an order for less than 120,000 boxes of tubes, what is the f disadvantage) in total (not per box) if Siliven buys 120,000 boxes of tubes from the outside supplier? Given this new informati 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 $ 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. Req 5 Req 6 Req 3 Req 4 eq 7 Req 2 Req 1 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 $1.35 per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier? Number of boxes of tubes manufactured by Silven Number of boxes of tubes purchased from the outside supplier