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Instructions Brightstone Tire and Rubber Company has capacity to produce 170,500 tires. Brightstone presently produces and sells 133,900 tires for the North American market at

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Instructions Brightstone Tire and Rubber Company has capacity to produce 170,500 tires. Brightstone presently produces and sells 133,900 tires for the North American market at a price of $179 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 19,500 tires for $110.95 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows: Direct materials $54 Direct labor 21 Factory overhead (58 % variable) 24 Selling and administrative expenses (40 % variable) 28 Total $127.00 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 seling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tres would be shipped overseas for an additional shipping cost of $7.56 per tire. In addition, Euro has made the order conditional on receiving European safety certiication. Brightstone estimates that this certification would cost $156,000. Required: A. Prepare a diferential analysis dated January 21 on whother to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors. Refer to the lists of Labels and Amount Descripdons for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign there is no amount or an amount is zero, enter 0. A colon ( will automatically appear if required B. Determine whether the company should reject (Altemative 1) or accept (Alternative 2) the special order from Euro Motors C. What is the minimum price per unit that would be financialy acceptable to Brightstone? Differential Analysis Reject Order (Alternative 1) or Accept Order (Alternative 2) January 21 Differential Reject Order Accept Order Effect on Income (Alternative 1) (Alternative 2) 2 (Alternative 2) 4 (Label) 10 B. Determine whether the company should reject (Altermative 1) or accept (Alternative 2) the special order from Euro Motors Decislon on accepting additional business Instructions Labels and Amount Descriptions Differential Analysis Final Questions Instructions Differential Analysis Final Questions B. Determine whether the company should reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors The company is indifferent since the result is the same regardiess of which alternative is chosen. Reject Accept C. What is the minimum price per unit that would be financially acceptable to Brightstone? 10 1 B. Determine whether the company should reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors

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