Question: 1 . If Silven buys its tubes from the outside supplier, how much of its own Chap - Off manufacturing costs per box will it
If Silven buys its tubes from the outside supplier, how much of its own ChapOff manufacturing costs per box will it be able to avoid?
Hint: You need to separate the manufacturing overhead of $ per box that is shown above into its variable and fixed components to derive the correct answer.
What is the financial advantage disadvantage per box of ChapOff if Silven buys its tubes from the outside supplier?
What is the financial advantage disadvantage in total not per box if Silven buys boxes of tubes from the outside supplier?
Should Silven Industries make or buy the tubes?
What is the maximum price that Silven should be willing to pay the outside supplier for a box of tubes?
Instead of sales of boxes of tubes, revised estimates show a sales volume of boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $ per year to make the additional boxes of tubes.
Assuming that the outside supplier will not accept an order for less than boxes of tubes, what is the financial advantage disadvantage in total not per box if Silven buys boxes of tubes from the outside supplier? Given this new information, should Silven Industries make or buy the tubes?
Refer to the data in Required Assume that the outside supplier will accept an order of any size for the tubes'at a price of $ per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier?
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