Make or buy decision.hungtinton product manufactures 10000 units of part M1. usually for use in its production. the following costs are reported.

Direct material.$20000

Direct labor..55000

variable factory overhead..45000

Fixed factory overhead..70000

total cost is 190000

Lukin company has offered to sell hungtinton 10000 units of part M1 annually for dollar $18 per unit.if hungtinton accepts the offer,some of the facilities presently used to manufacture part M1 could be rented to third party at an annual rental of $15000, additionally 4 per unit of fixed factory overhead applied to part M1 would be totally eliminated .

Required. should hungtinton accepts lukin offer and why?