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.

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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