The Rug Weaving Company manufactures an intermediate product identified as Y3. Variable manufacturing costs per unit of Y3 are as follows:

Direct materials $2

Direct labor $7

Variable manufacturing overhead $5

Purple Company has offered to sell Rug Weaving 5,000 units of Y3 for $20 per unit. If Rug Weaving accepts the offer, $25,000 of fixed manufacturing overhead will be eliminated. Applying differential analysis to the situation, Rug Weaving should