Decision on Accepting Additional Business Brightstone Tire and Rubber Company has capacity to produce 179,000 tires. Brightstone presently produces and sells 137,000 tires for the North American market at a price of $114 per tire. Brightstone is evaluating a special order from European automobile company, Euro Motors. Euro is offering to buy 21,000 tires for $96.1 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows: Direct materials $43 Direct labor 16 Factory overhead (70% 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 $126,000 a. Prepare a differential analysis dated January 21 on whether to Reject Order (Alternative 1) or Accept Order (Alternative 2). If an amount is zero, enter zero "O". If required, round interim calculations to two decimal places. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) January 21 Reject Accept Differential Order Order Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues $ 2,018,100 2.018.100 Costs: Direct materials 903,000 X 903,000 X Direct labor 0 336,000 X 336,000 X Variable factory overhead 382.200 x 382,200 X Variable selling and admin. expenses 0 73,500 x 73,500 X Shipping costs 0 126,000 X 126,000 X 0 o findini 0 Certification costs 0 126,000 x 126,000 X Profit (loss) 0 1 71,600 X X $ 71,600 X