Instructions Differential Analysis Shaded cells have feedback. X Brightstone Tire and Rubber Company has capacity produce 184,000 tires. Brightstone presently produces and sells 130,500 tires for the North American market at a price of S178 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 23,900 tires for $115.76 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows: A. Prepare a differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon) will automatically appear if required. Direct materials $55 Direct labor 21 Differential Analysis Score: 49/145 Factory overhead (56% variable) 27 Reject Order (Alternative 1) or Accept Order (Alternative 2) January 21 Selling and administrative expenses (41% variable) 28 Differential Effect Total $131.00 1 Reject Order Accept Order on Income (Alternative 1) (Alternative 2) (Alternative 2) 5 Revenues Brightstone pays a selling commission equal to 4% 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 $7.96 per tire. In addition, Euro has made the order conditional on receiving European safety certification. Brightstone estimates that this certification would cost $193,590 4 Costs Direct materials Direct labor Required: A. Prepare a differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If 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 (Alternative 1) or accept (Alternative 2) the special order from Euro Motors. C. What is the minimum price per unit that would be financially acceptable to Brightstone? Variable factory overhead 8 Variable selling and administrative expenses 9 Shipping costs 10 Certification costs 11 Income (Loss) Labels and Amount Descriptions Labels Cash flows from investing activities Costs January 21 Amount Descriptions Certification costs Direct labor Direct materials Gain on sale of investments Income (Loss) Loss on sale of investments Revenues Shipping costs Variable factory overhead Variable selling and administrative expenses