Sandstone is still debating whether it should introduce Y21. The following table provides information on selling prices, variable costs, and inventory carrying costs for Z35 and Y21:

Required:
Using the average manufacturing cycle times calculated in Problem 19-33, requirement 2, should Sandstone manufacture and sell Y21? Show your calculations and briefly explain your reasoning.

Annual Average Number of Orders 60 30 Selling Price per Order If Average Manufacturing Cycle Time per Order Is Less Than More Than 395 Hours395 Hours Variable Cost per Order $18,000 5,000 Inventory Carrying Cost per Order per Hour $0.80 0.30 Ca Product Z35 Y21 S33,000 9,200 $32,500 8,700