Petrako Manufacturing Company makes special filters for the heavy equipment industry. Actually, the company produces and sales between 120,000 and 130,000 units per month (at 85% production capacity) During September 2021 the following selected accounts summary was taken from the accounting records:

Units produced and sales.110,000

Direct Materials per unit is . $ 5

Direct Labor per unit is $ 4

Variable overhead per unit is... $ 1

Variable selling expenses per unit sold $ 3

Total variable costs $13

Fixed costs:

Manufacturing overhead $500,000

General and administrative 200,000

Accordingly, to the production and sales budget for October 2021, the management projected sales of 125,000 units at $30 each.

Required: (6 points each) References and computations are required

1. Petrako has received an offer from Mexican company to buy 10,000 filters at $22 per unit. If Petrakos accepted the proposals the variable selling cost increase to $3.50 per unit (actually is $3), and increase in fixed general and administrative cost of $15,000. This sale would not affect national sales or their costs. Using only financial amounts factors, should Petrakos may be accepting the proposal of Mexican Company?