20-33. WAITING TIMES, RELEVANT REVENUES, AND RELEVANT COSTS (CONTINUATION OF 20-32). Shipley is still debating whether it should introduce Q19. The following table provides information on selling prices, variable costs, and inventory carrying costs for P25 and Q19: Annual Selling Price per Order If Average Manufacturing Cycle Time per Inventory Carrying Order Is Average Variable Cost per Number of Less Than More Than 640 Cost per Order per Product Orders 640 Hours Hours Order Hour P25 100 $21,000 $20,500 $11,550 $0.75 Q19 25 8,500 8,000 5,100 0.20 Required Using the average manufacturing cycle times calculated in Problem 20- 32, should Shipley manufacture and sell Q19? Show your calculations and briefly explain your reasoning. 20-32. WAITING TIMES, MANUFACTURING CYCLE TIMES. The Shipley Corporation uses an injection molding machine to make a plastic product, P25, after receiving firm orders from its customers. Shipley estimates that it will receive 100 orders for P25 during the coming year. Each order of P25 will take 80 hours of machine time. The annual machine capacity is 9,000 hours. Required 1. Calculate (a) the average amount of time that an order for P25 will wait in line before it is processed and (b) the average manufacturing cycle time per order for P25. 2. Shipley is considering introducing a new product, Q19. The company expects it will receive 25 orders of Q19 in the coming year. Each order of Q19 will take 20 hours of machine time. Assuming the demand for P25 will not be affected by the introduction of Q19, calculate (a) the average waiting time for an order received and (b) the average manufacturing cycle time per order for each product, if Shipley introduces Q19.