Include formulas with plugged in numbers for variable selling and admin expenses, shipping costs, and certification costs

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 C) for $116 per tire. Brightstone's accounting system indicates that the total cost per WSW tire is as follows: How Excel Direct materials 5 56 Direct labor 22 Factory overhead (60% variable) 25 Selling and administrative expenses (45% variable) mg Total $129 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 penses. However, this special order would not have a sales connnisskion. 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 certication. Brightstone estimates that this certication would cost $165,000. a. Prepare a differential analysis dated January 21 on whether to reject (Alternative 1): or accept (Alternative 2) the special order from Euro Motors