Company A requires three units of R2 for every unit of D2 that it produces. Currently, R2 is made by comapny A, with the following per unit costs in a period when 20,000 units were produced: Direct materials $ 5.00 Direct labor 2.50 Manufacturing overhead 5.60 Total $13.10 Variable manufacturing overhead is applied at $3.75 per unit. The rest of the overhead is fixed. Company A will need 21,000 units of R2 for next years production. Company B has offered to supply 21,000 units of R2 at a price of $12.00 per unit. If company A accepts the offer, all of the variable costs and $20,000 of the fixed costs will be avoided. Should company A accept the offer from company B? What are the incurred costs for Sperlberg?