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13 14 a. begin{tabular}{|l} Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) May 4 end{tabular} 15 16 17 18 19
13 14 a. \begin{tabular}{|l} Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) \\ May 4 \end{tabular} 15 16 17 18 19 20 21 22 23 24 25 26 27 28 20 30 31 32 33 b. The proposal should not be accepted. 34 35 Obj. 1 Brightstone Tire and Rubber Company has capacity to produce 170,000 tires. Brightstone presently produces and sells 130,000 tires for the North American market at a price of $175 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 20,000 tires for $116 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows: Brightstone pays a selling commission equal to 5% of the selling price on North American orders, which is included in the variable portion of the selling and adtrinistratige expenses. However, this spocial order would not have a sales commission. If the order was accepted, the tures would be shipped overicas for an additional shippiag cost of $7,50 per tire. In addition, Euto has made the order conditional on receiving Eutopean safety certification. Brightstone estimates that this certification would cost 5165,000
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