El Guapo's manufactures a frozen burrito called El Grande. Variable manufacturing costs per unit of El Grande are as follows: Direct materials $1 Direct labor $10 Variable manufacturing overhead $5 Don Pablo's has offered to sell El Guapo 5,000 units of El Grande for $22 per unit. If El Guapo accepts the offer, $70,000 of fixed manufacturing overhead will be eliminated. Using your differential analysis skills, prepare an analysis to explain the alternative scenarios, which will make it easier for El Guapo to make a decision. What should El Guapo do? What is your recommendation to El Guapo? Show your calculations to support your recommendation to receive credit