2. What would be the maximum purchase price acceptable to Silven Industries? (Do not round intermediate calculations. Round your answer to 2 decimal places.) maximum purchase price per box of tubes 3. Instead of sales of 100,000 boxes, revised estimates show a sales volume of 120,000 boxes. At this new volume, additional equipment must be acquired to manufacture the tubes at an annual rental of $40,000. Assume that the outside supplier will not accept an order for less than 120,000 boxes. a. Calculate the total relevant cost of making 120,000 boxes and total relevant cost of buying 120,000 boxes. (Do not round intermediate calculations.) Making Buying Total cost b. Based on the above calculations, should Silven Industries make or buy the boxes? Make

2. What would be the maximum purchase price acceptable to Silven Industries? (Do not round intermediate calculations. Round your answer to 2 decimal places.) maximum purchase price per box of tubes 3. Instead of sales of 100,000 boxes, revised estimates show a sales volume of 120,000 boxes. At this new volume, additional equipment must be acquired to manufacture the tubes at an annual rental of $40,000. Assume that the outside supplier will not accept an order for less than 120,000 boxes. a. Calculate the total relevant cost of making 120,000 boxes and total relevant cost of buying 120,000 boxes. (Do not round intermediate calculations.) Making Buying Total cost b. Based on the above calculations, should Silven Industries make or buy the boxes? Make

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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