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all photos are from the same problem , help solve please! Decision on Accepting Additional Business Talladega Tire and Rubber Company has capacity to produce
all photos are from the same problem , help solve please!
Decision on Accepting Additional Business Talladega Tire and Rubber Company has capacity to produce 500,000 tires. Talladege presently produces and sells 400,000 tires for the North American market at a price of $200 per tire. Talladega is evaluating a special order from a European automobile company, Autobahn Motors, Autobahn is offering to buy 100,000 tires for $150 per tire. Talladega's accounting system indicates that the total cost per tire is as follows $75 20 Direct materials Direct labor Factory overhead (70% variable) Selling and administrative expenses (60% variable) Total 30 18 $143 Talladega pays a telling commission equal to 3% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of 5) per tire. In addition, Autobahn has made the order conditional on receiving furopean safety certification. Talladega estimates that this certification would cost $400,000 are a rential analysis dated July 31 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Autobahn Motors. II.an amount is vero, enter "0". 11 required, round interim calculations to two decimal places. Differential Analysis Reject Order (AIR. 1) or Accept Order (Alt. 2) July 21 Reject Accept Differential Order Order Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs Direct materials Direct labor Variable factory overhead Variable selling and admin. cxpenses UVCC Total $143 Tallades pays a selling commission equal to 3% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $3 per tire. In addition, Autobahn has made the order conditionat on receiving European safety certification. Tolladega estimates that this certification would cost $400,000 .. Prepare a differential analysis dated July 31 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Autobahn Motors. If an amount is zero, enter *o* required, round Interim calculations to two decimal places. Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) July 31 Reject Accept Order Effects (Alternative 1) (Alternative 2) (Alternative 2) Differential Order Revenues Costs Direct materials Direct labor I will Variable factory overhead Variable selling and admin. expenses Shipping costs Certification costs bil). Profit (Loss) Determine whether to reject (Alternative 1) or accept (Alternative 2) the special order from Autobahn Motors b. What is the minimum price per unit that would be financially acceptable to Talladega? Round your answer to two decimal places. per unit Step by Step Solution
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