The Chateau Company manufactures 4,000 telephones per year. The full manufacturing costs per telephone are as follows: Direct materials $4 Direct labor 16 Variable manufacturing overhead 12 Average fixed manufacturing overhead 12 Total $44 The Quick Assembly Company has offered to sell Chateau 4,000 telephones for $31 per unit. If Chateau accepts the offer, $20,000 of fixed overhead will be eliminated. Chateau should: Group of answer choices