IVplast is still debating whether it should introduce Y28. The following table provides information on selling prices, variable costs, and inventory carrying costs for Z39 and Y28:

Required

Using the average manufacturing cycle times calculated in Problem 20-32, requirement 2, should IVplast manufacture and sell Y28? Show your calculations and briefly explain your reasoning.

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Product Z39 Y28 Annual Average Number of Orders 40 20 Selling Price per Order If Average Manufacturing Cycle Time per Order Is Less Than More Than 640 Hours 640 Hours $30,300 8,100 $29,500 7,500 Variable Cost per Order $16,000 6,000 Inventory Carrying Cost per Order per Hour $0.70 0.35