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Hoover Company manufactures a part for its production cycle. The costs per unit for 10,000 units of this part are as follows: Direct materials $20 Direct labor 15 Variable factory overhead 16 Fixed factory overhead 10 Total costs $61 The fixed factory overhead costs are unavoidable. Madison Company has offered to sell 10,000 units of the same part to Hoover Company for $55 a unit. Assuming no other use for the facilities, Hoover Company should: