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Hardline Flooring produced 2,500 yards of its economy-grade carpet. In the coloring process, there was a pigment defect and the resulting color appeared to be faded. The carpet normally sells for $15 per yard, with $8 of variable cost per yard and $4 of fixed cost per yard assigned to the carpet. The company realizes that it cannot sell the carpet for $15 per yard through its normal channels, unless the coloring process is repeated. The incremental cost of the process is $3 per yard. Reliable Home Solutions is willing to buy the carpet in its current faded condition for $10 per yard. Should Hardline repeat the coloring process or sell the carpet to Reliable Home Solutions and what is the benefit?

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