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 $1.35 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%.

The link between volume of production and the cost of building manufacturing operations is particularly important in industries characterized byanswers: process innovations.product manufacturing.product innovation.process manufacturing.

Consider a small island country whose only industry is weaving. the following table shows information about the small economy in two different years. complete the table by calculating physical capital per worker as well as labor productivity. hint: recall that productivity is defined as the amount of goods and services a worker can produce per hour. in this problem, measure productivity as the quantity of goods per hour of labor. year physical capital labor force physical capital per worker labor hours output labor productivity (looms) (workers) (looms) (hours) (garments) (garments per hour of labor) 2024 160 40 1,800 14,400 2025 180 60 3,900 23,400

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