Seawall is still debating whether it should introduce Upper Y 28. The following table provides information on selling prices, variable costs, and inventory carrying costs for Upper Z 39 and Upper Y 28:

 

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Pead the ruirament i More Info O Data Table Selling Price per Order Shamrock estimates that it will receive 40 orders for Z39 during the coming year Each order of Z39 will take 70 hours of machine time. The annual machine if Average Manufacturing Cycle Time per Order is capacity is 3,000 hours. Shamrock is considering introducing a new product, Y28 The company expects it will raceive 10 orders of Y28 in the coming year. Each order of Y28 will take 10 hours of machine time. Assuming the demand for Z39 will not be affected by the introduction of Y28, the average waiting time for an order received is 985 hours. The average manufacturing cycle time per order for Z39 if Shamrock introduces Y28 is 1,055 hours, and the average manufacturing cycle time per order for Y28 is 995 hours. The average amount of time that an order for Z39 will wait in line before it is processed is 490 hours. The average manufacturing cycle time per order for Z39 without introducing Y28 is 560. Annual Variable Inventory Average Number Less Than More Than Cost per Carrying Cost per Product of Orders 975 Hours 975 Hours Order Order per Hour Z39 40 $ 21,000 $ 20,500 $ 11,550 S 0.70 Y28 10 8,600 8,100 5,160 0.20 Begin by calculating the expected increase in contribution from Y28. First select the formula then calculate the expected increase in contribution from Y28. Increase in expected Contribution margin per order for Y26 Expected number of orders of Y28 contnbution from Y28 2940 10 29 A00 Now determine the effect of increasing the average manufacturing cycle time by completing the following table (Round your answers to the nearest cent If a box is not used in the table, leave the box empty, do not enter a zero.) Effect of Increasing Average Expected Loss in Manufacturing Cycle Time Revenues Plus Expected Loss in Expected Increase in Carrying Expected Increase in Carrying Costs for all Products Cost of Introducing Y28 Product Revenues for Z39 Z39 Y28 Total | Pead the ruirament i More Info O Data Table Selling Price per Order Shamrock estimates that it will receive 40 orders for Z39 during the coming year Each order of Z39 will take 70 hours of machine time. The annual machine if Average Manufacturing Cycle Time per Order is capacity is 3,000 hours. Shamrock is considering introducing a new product, Y28 The company expects it will raceive 10 orders of Y28 in the coming year. Each order of Y28 will take 10 hours of machine time. Assuming the demand for Z39 will not be affected by the introduction of Y28, the average waiting time for an order received is 985 hours. The average manufacturing cycle time per order for Z39 if Shamrock introduces Y28 is 1,055 hours, and the average manufacturing cycle time per order for Y28 is 995 hours. The average amount of time that an order for Z39 will wait in line before it is processed is 490 hours. The average manufacturing cycle time per order for Z39 without introducing Y28 is 560. Annual Variable Inventory Average Number Less Than More Than Cost per Carrying Cost per Product of Orders 975 Hours 975 Hours Order Order per Hour Z39 40 $ 21,000 $ 20,500 $ 11,550 S 0.70 Y28 10 8,600 8,100 5,160 0.20 Begin by calculating the expected increase in contribution from Y28. First select the formula then calculate the expected increase in contribution from Y28. Increase in expected Contribution margin per order for Y26 Expected number of orders of Y28 contnbution from Y28 2940 10 29 A00 Now determine the effect of increasing the average manufacturing cycle time by completing the following table (Round your answers to the nearest cent If a box is not used in the table, leave the box empty, do not enter a zero.) Effect of Increasing Average Expected Loss in Manufacturing Cycle Time Revenues Plus Expected Loss in Expected Increase in Carrying Expected Increase in Carrying Costs for all Products Cost of Introducing Y28 Product Revenues for Z39 Z39 Y28 Total |