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alock show Me How Decision on Accepting Additional Business Talladega Tire and Rubber Company has capacity to produce 500,000 tires. Talladega presently produces and sells 400,000 tires for the North American market at a price of $200 per tire: Talladega evaluating a special order from a European automobile company, Autobahn Motors Autobahn is offering to buy 100.000 tires for $150 per tire. Taladega's accounting system indicates that the total cost per tre is as follows: Direct materials $75 20 30 Director Factory overhead (70% variable) Selling and administrative expenses (60% variable) Total 18 $143 Talladega pays a selling commission equal to 1% of the ling price on North American orders, which is included in the variate portion of the wing and a petes, this special de would not have a sales common in the order was accepted, the tires would be tied overseas for an additional shipping cost of 13 per tire. In addition, Autobus made the order content on receiving European safety certification Talladega estimates that this certification com 5400,000 Prepare al doted July 1 on whether to reject (temnative 1) or accept (ternative 2) e eclat order from Autobahn Motors ir an amount is een ruired, round Interim calculations to two decimal places Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) July 31 Reject Accept Differential Order Order Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenue Costs Direct materials Direct labor Variable factory overhead Variable seling and admin expenses Previous Check My Work All wore saved Email Save and Car Som Agent for book Show Me Twiadega pays a selling commission equal to 3 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 $3 per tire. In addition, Autobahn has made the order condition on receiving turopean safety certification. Talladega estimates that this certification would cost $400,000 a. Prepare a differential analysis dated July 31 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Autobahn Motors. If an amount is zero, entero". If required, round interim calculations to two decimal places. Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) July 31 Reject Accept Differential Order Order Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs! Direct materials Direct labor Variable factory overhead Variable selling and admin expenses Sping costs Certification costs Puntos Determine whether to reject (Anamnetve 1) or (Alternative 2) the special order from Autobahn Motors b. What the minimum orice per unit that would be financially acceptable to Talladega! Round your answer to two decimal places Previous Net Check My Won El tructor Save and Surger for Grading All work saved

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