Decision on Accepting Additional Business Brightstone Tire and Rubber Company has capacity to produce 255,000 tires. Brightstone presently produces and sells 195,000 tires for the North American market at a price of $114 per tire. Brightstone is evaluating a special order from a,European automobile company, Euro Motors. Euro is offering to buy 30,000 tires for $93.2 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows: Direct materials $43 Direct labor 16 Factory overhead (60% variable) 26 Selling and administrative expenses (40 % variable) 23 Total $108 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 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 $6 per tire. In addition, Euro has made the order conditional on receiving European safety certification. Brightstone estimates that this certification would cost $180,000. a. Prepare a differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors. If an amount is 2ero, enter zero "O If required, round interim calculatins to two decimal places. Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) January 21 Reject Order (Alternative 1) Accept Order (Alternative 2) Differential Effect on Income (Alternative 2) .706 nhh 2.706 000 Total $108 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 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 $6 per tire. In addipion, Euro has made the order conditional on receiving European safety certification. Brightstone estimates that this certification would cost $180,000. a. Prepare a differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors. If an amount is zero, enter zero "0". If required, round interim calculations to two decimal places. Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) January 21 Reject Order Acpt Order (Alternative 2) Differential Effect on Income (Alternative 2) (Alternative 1) Revenues 2,796,000 s 2,796,000 Costs: Direct materials 1,290,000 1,290,000 Direct labor 480,000 480,000 Variable factory overhead 468,000 468,000 105,000 X 105,000 Variable selling and admin. expenses X 180,000 180,000 Shipping costs 180,000 180,000 Certification costs 93,000 93,000 Income (Loss)