Carmen manufactures a unit called A2. Variable manufacturing costs per unit of A2 are as follows:Direct materials$1Direct labor$10Variable manufacturing overhead$5The Don Company has offered to sell Carmen 5,000 units of A2 for $22 per unit. If Carmen accepts the offer, $70,000 of fixed manufacturing overhead will be eliminated.Applying differential analysis to the situation, what should Carmen do? Support your answers with the calculations you used to make your decision.

Carmen manufactures a unit called A2. Variable manufacturing costs per unit of A2 are as follows:Direct materials$1Direct labor$10Variable manufacturing overhead$5The Don Company has offered to sell Carmen 5,000 units of A2 for $22 per unit. If Carmen accepts the offer, $70,000 of fixed manufacturing overhead will be eliminated.Applying differential analysis to the situation, what should Carmen do? Support your answers with the calculations you used to make your decision.