Open Application Menu hapter 12 Homework 04-26-2022 Decision on Accepting Additional Business eBook Print tem Rubber Meets the Road Company has capacity to produce 250,000 tires. Rubber Mouts the Road presently produces and sells 100,000 tires for the North American market at a price of $20 per tre. Rubber Meets the Road is evaluating a special order from a South American automobile company, Chaining Motors, Cruising Motors is offering to buy 20,000 tires for $10 per Meets the Road's accounting system indicates that the total cost per tire is as follows: Rubber Direct materials $5.00 Drect labor 2.30 Factory overhead (45% variable) 2.00 Seling and administrative expenses (30% vanable) Total 1.50 $11.00 Rubber Meets the Road pays a sales commission equal to 2% of the selling price on North American orders, which is included in the variable portion of the selling and adminstrative expenses However, thus special order would not have a sales commission. If the order was accepted, the tires would be shoped overseas for an additional shipping cost if 60.75 portre. In addition Cruising has made the under conditional on Rubber Meats the Road receiving a Brazilian safety certification. Cruising estimates that this certification would vost Rubber Meets the Road $10,000 a. Prepare a deferential analysis report for the proposed sale to Cruising Motors. Round your answers to the nearest cent Rubber Heets the Road Company Sell to Cruising Motors