Decision on Accepting Additional Business

Talladega Tire and Rubber Company has capacity to produce $500,000$ tires. Talladega 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:

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