19-31 Waiting times. manufacturing cycle times. The Seawall Corporation uses an injection molding machine to make a plastic product, Z39, after receiving firm orders from its customers. Seawall estimates that it will receive 50 orders for 239 during the coming year. Each order ofZ39 will take 80 hours of machine tne. The annual machine capacm,' is 5,00 hours. I. Calculate (a)the average amount oftimethatanorderforZ39wiIIwaitinIinebeforeitisprocessedand the average manufacturing cycle the per order for Z39_ 2. Seawall is consdering introducing a new product, Y28_ The company expects it wil receive 25 orders of Y28 in the cornhg year. Each order of Y28wiII take 20 hours of machine time. Assuming the demand for Z39 will not be affected bythe introduction of Y28, calculate (a) the average waiting time for an order received and (b)the average manufacturing cycle tme per orderfor each producL if Seawall introduces 19-32 Waiting times, relevant revenues. and relevant costs (continuation of 19-31). Seawall is still debating whether it should introduce Y28 The following table provides information on selling prices, vari- able costs, and inventory carrying costs for Z39 and Y2& Selling Price per Order if Average Manufacturing Cycle Time per Order Is Annual Average Number of Orders Less Than 320 Hours ,ooo 8,400 More Than 320 Hours $26,500 Variable Cost per Order $15,000 5,000 I nventory Carrying Cost per Order per Hour so.75 I. Using the average manufacturing cycle times calculated in Problem 19-31, requirement 2, should Seawall manufacture and sell Y28? Show your calculations 2. Should Seawall manufacture and sell Y28ifthe data are changed as follows: Selling Price per Order if Average Manufacturing Cycle Time per Order Is Annual Average NMnber of Orders Less Than 320 Hours More Than 3m Hours 26, soo Variable Cost per Inventory Carrying Cost per Order per Hour So.75