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Company has capacity to tires. Taliadega presently produces and sells 143,000 tires for the North American market at a price or s91 per t order from a European automobile company, Autobahn Motors Autobahn is offering to buy 22,000 tires for $75.75 per tire. Taladega's accounting system ind cares that the total cest per tire is as foilows Direct materials Direct labor Factory overhead (60% variable) Selling and oorinistrative expenses (40% variatie) $87 Talladega pays a eling commission equal to 5% of the seling pree on North American orders, which is ind ded in the va labie portion of the selling and adm istrative expenses. However, this special order wodd not have sales commission. If the order was accepted, the tires would be shipped overseas for an odde onai shpping cost of S5 per tre. In adde on, A 0bahn has made the order conditional on recei ng European sa ety certification. Taladega estimates Uhat this certification would cost $105,600, a. Prepare a dimerential analysis dated My 31 on whether to reject (Alternative 1) or bec ept CAternative 2) tho special order from Autobahn Moto . If an amount is rere, to two deomai places. er i, es red, rond itenmak letons Oifferential Analysis Reject Order (At. 1) or Accegt Order (AIt Revenues Direct materias Direct lbor Variable factory overheed Variable selling and admin expeises Shipping costs Certification costs Income (Louw)

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