Instructions Brightstone Tre and Rubber Company has capacity to produce 178,500 tires Brightstone presently produces and sels 131,600 tires for the North American market at a price of $190 per tre. Brightone is evaluating a special order from a European automobile company, Euro Motors, Euro is offering to buy 15,100 tres for $115 30 per tire. Brightstone's counting system indicates that the cost per tire is as follows: Direct mates Direct labor Factory overhead (57% variable) Selling and administrative penses (49% variable) 27 $129.00 Brightone pays a selling commission equal to 4% of the seling price on North American orders, which is included in the variable portion of the selling and administrative expenses However, the special order would not have a sales commission, the order was accepted, the tires would be shipped overseas for an additional shipping cost of $7.00 per tire. In addition, Euro has made the order conditional on receiving European safely orthotion Bigstone estimates that this certification would cost $121,253 Required: A Prepare a differential analysis dated January 21 on whether or (Alemave to completive 2) the special order from Euro Motors. Refer to the iss of Label and Amount Descriptions 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, anter" Acolon) automatically appear it required Determine whether the company should act i velor comple te the special order from Euro Motors C. What is the minimum price per unit that would be financial acceptable to Brightone? Instructions Differential Analysis TIT A Prepare a differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alemative 2the special order from Euro Motors Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for extantries. For those bows which you must subtracted or negative numbers use a mission there is no amount or an amount is zero, entero". A colon will automatically appear it required Diferential Analysis Reject Order (Alternative 1) or Accept Order (Alternative 2) January 21 Reject Onder Accept Order Differential Effect on income (Alternative 2) (Alternative 1) (Alternative 2) Decision on accepting additional business Instructions Labels and Amount Descriptions Differential Analysis Final Questions Instructions Differential Analysis Final Questions of Labe ther De 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 regardless of which alternative is chosen Reject Accept C. What is the minimum price per unit that would be financialy acceptable to Brightstone? Cabel)
