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The product selected (called Chap-Om is a lip balm that will be sold in a lpstick-type tube. The product will be sold to wholesalers In boxes of 24 tubes for $12 per box Because of excess capacity, no additional fxed manufacturing overhead costs will be Incurred to produce the product. However, a $10,000 charge for foed manufacturing overhead will be absorbed by the product under the company's absorption costing system. Using the estimated sales and production of 110,000 boxes of Chap-Off, the Accounting Department has developed the following manufacturing cost per box Direct material Direct labor Manufacturing overhead $ 5.00 3.40 2.10 $10.50 Total cost The costs above relate to making both the lip balm and the tube that contalns t. As an alternative to making the tubes for Chap-Oft Slven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes would be $1.65 per box of 24 tubes. If SSiven Industries stops making the tubes and buys them from the outside suppliet, 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: 1 if Silven buys Its tubes from the outside supplier, how much of its own Chap-Off manufacturing costs per bax will it be able to avold? (Hint You need to separate the manufacturing overhead of $2.10 per box that is shov 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 suppler? 3. What is the Tinancial advantage (disadvantage) in total (not per box) if Silven buys 110,000 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 suppler for a box of 24 tubes? 6 Instead of sales of 110,000 baxes of tubes, revised estimates show a sales voume of 137,000 boxes of tubes. Al this higher sales volume, Silven would need to rent extra equipment at a cost of $47,000 per year to make the additionat 27000 boxes of tubes. Assuming that the outside supplier wll not accept an order for less than 137000 baxes of tubes what is the financial advantage (disadvantage) in total (not per boxj it Sven buys 137,000 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 tor the tubes at a price of $165 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. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 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 derive the correct answer.) (Do not round intermediate calculations. Round your answer to 2 decimal places.) Show less A Avoidable manufacturing costs per box of Chap-Off Re 2>