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i just need the last question in part b EX 25-15 Decision on accepting additional business OBJ. 1 Brightstone Tire and Rubber Company has capacity
i just need the last question in part b
EX 25-15 Decision on accepting additional business OBJ. 1 Brightstone Tire and Rubber Company has capacity to produce 170,000 tires. Brightstone presently produces and sells 130,000 tires for the North American market at a price of $175 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 20,000 tires for $116 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows: 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 $7.50 per tire. In addition, Euro has made the order conditional on receiving European safety certification. Brightstone estimates that this certification would cost $165,000. Brightstone accept the special order from Euro Motors. Minimum Price per Unit =NumberofUnitsTotalDifferentialCosts= Alternative calculation Step by Step Solution
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