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Talladega Tire and Rubber Company has capacity to produce 177.500 tires. Talladega presently produces and sells 130,500 tires for the North American market at a

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Talladega Tire and Rubber Company has capacity to produce 177.500 tires. Talladega presently produces and sells 130,500 tires for the North American market at a price of $178 per tire. Talladega is evaluating a speclal order from a European automobile company, Autobahn Motors. Autobahn is offering to buy 19,600 tires for $116.62 per tire. Talladega's accounting systom indicates that the total cost per tire is as follows: 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 $7.65 per tire. In addition. Autobahn has made the order conditional on receiving European safety certification. Talladega estimates that this certification would cost $165,424. Required: a. Prepare a differential analysis dated July 31 on whether fo reject (Allernative 1) or accept (Alternathe 2) the special order from Autobahn Motors. Reler to the lists of Labels 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. If there is no amount or an amount is zero, enter "O". A colon () wit automatically appear it required. Differential Analysis Reject (Alternative 1) or Accept (Alternative 2) Order July 31 b. Determine whether the company should reject (Alternative 1) or accept (Alternative 2) the special order from Autobahn Motors. Reject The company is indifferent since the result is the same regardless of which altemative is chosen. Accept c. What is the minimum price per unit that would be financially acceptable to Talladega? Round your answer to two decimal places

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