Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has approached Almond Treats with a proposal to sell the company its top selling cereal at a price of $22,200 for 20,000 pounds. The costs shown are associated with production of 20,000 pounds of almond cereal:

Direct material	$13,100
Direct labor	4,900
Manufacturing overhead	7,100
Total	$25,100

The manufacturing overhead consists of $2,100 of variable costs with the balance being allocated to fixed costs.

A. Calculate the differential cost of Acme?

$___

B. Should Almond Treats make or buy the almond cereal?

(Make, Buy)