Decision on Accepting Additional Business Brightstone Tire and Rubber Company has capacity to produce 153,000 tires. Brightstone presently produces and sells 117,000 tires for the North American market at a price of $109 per tire. Brightstone is evaluating a special order from a European automobile company Euro Motors. Euro is offering to buy 18,000 tires for $86.95 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows: Direct materials Direct labor Factory overhead (60% variable) Selling and administrative expenses (30% variable) Total $103 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 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 Eur safety certification. Brightstone estimates that this certification would cost $104,400. accept (Alternative 2) the special order from Euro Motors. If an amount is zero, a. Prepare a differential analysis dated January 21 on whether to relect All enter zero "O". If required, round interim calculatiods to two decima Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) January 21 Reject Order (Alternative 1) (Alternative 2 12,530 X 14.38.100 Order Costs Direct materials Direct labor Variable factory overhead .. Prepare a licencil 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 "O" If required, round interim calculations to two decimal places Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) January 21 Reject Accept Differential Order Order Effect (Alternative 1) (Alterative 2) on Income (Alternative 2) Revenues 125300 X 100 X 1 Direct materials 4,797.000 Direct labor Variable factory overhead Variable seling and admin Shipping costs penses Certification costs Income (Loss) Checy Work a. Subtract the additional cost each unit cost m administrative expenses are 30% of $22less 5 ed by 18.000f of 100 co the n u nt m ever ed by the number of res in the on The variabing and Determine whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors. Accept the special orders b. What is the minimum priceperunt that would be financially acceptable to rightstone? Round your answer to two deomalace 33.95 per unit