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Dedision on Accepting Additional Business Brightstone Tire and Rubber Company has capacity to produce 269,000 tires. Brightstone presently produces and selis 221,000 tires for the

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Dedision on Accepting Additional Business Brightstone Tire and Rubber Company has capacity to produce 269,000 tires. Brightstone presently produces and selis 221,000 tires for the Narth American market at a price of $99 per tire. Brightstone is evaluating a special order from a European butomobile company, Euro Notars. Euro is offering to buy 34,000 tires for $2.55 per tire. Brightstone's accounting system indicates that the total cost per bre is as follows: Brightstone pays a selling commission equal to $% of the seling 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 everseas for an additional shipping cost of $5 per tire. In addition, Euro has made the order conditional on recelving European safety certification. Brightstone estimates that this certification would cost $176,800. a. Prepare a differnntiat analysis dated lanuary 21 on whether to Reject Order (A)ternative 1) or Accept Order (Alternative 2), 1f an amount is zero, enter zero " 0 ". 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. additional shipping cost of $5 per tire. In addition, Euro has made the order conditional on receiving European safety certification. Brightstone estimates that this certincation would cost $176,800. 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 "0:. 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. Determine whether to reject (Aiternative 1) or accept (Aiternative 2) the special order from Euro Motors. b. What is the minimum price per unit that would be financialy acceptable to Brightstone? Round your answer to two decimal places. 5 per unit

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