Carmen manufactures a unit called A2. Variable manufacturing costs per unit of A2 are as follows:

Direct materials	$1
Direct labor	$10
Variable manufacturing overhead	$5

The 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.