Labels and Amount Descriptions Differential Analysis Final Questions Instructions Talladega Tire and Rubber Company has capacity to produce 187.000 tires. Talladega presently produces and sells 134,200 tires for the North American market at a price of $176 per tire. Talladega is evaluating a special order from a European automobile company, Autobahn Motors. Autobahn is offering to buy 15,100 tires for $119.66 per tire. Talladega's accounting system indicates that the total cost per tire is as follows: Direct materials Direct labor Factory overhead (58% variable) Selling and administrative expenses (43% variable) 25 Total $132 Talladega 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 $7.73 per tire. In addition, Autobahn has made the order conditional on receiving European safety certification Talladega estimates that this certification would cost $127 293. Required: a. Prepare a differential analysis dated July 31 on whether to reject (Alternative 1) or accept (Alternative 2) the special aterfrom Athahn Motore Refer to the lite nelle and maintain the avere 11 Income (lossy 30. 00 3 62,363.00 362,3630 CICLIS a. Prepare a differential analysis dated July 31 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Aut subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon () will automatically a Score: 137/143 Differential Analysis Reject (Alternative 1) or Accept (Alternative 2) Order July 31 Reject Order Accept Order Differential Effect on Income (Alternative 2) $1,806,866.00 (Alternative 1) $0.00 (Alternative 2) $1,806,866.00 3 Revenues 4 Costs: Direct materials 0.00 Direct labor 0.00 Variable factory overhead 0.00 leseng ndadexpenses 0.00 (860,700.00) (347,300.00) (236,466.00) (56,021.00) (116,723.00) (127.293.00) $62,363.00 (860,700.00) (347,300.00) (236,466.00) (56,021.00) (116,723.00) (127.293.00) $62,363.00 Shipping costs Certification costs 0.00 10 0.00 $0.00 11 Income (loss) Feedback Check My Work c. What is the minimum price per unit that would be financially acceptable to Talladega? Round your answer to two decimal places Points: 0/1