Posted: June 15th, 2022

Brightstone Tire and Rubber Company has capacity to produce

Brightstone Tire and Rubber Company has capacity to produce 177,500 tires. Brightstone presentlyproduces and sells 130,500 tires for the North American market at a worth of $178 per tire. Brightstoneis evaluating a particular order from a European vehicle firm, Euro Motors. Euro is providing tobuy 19,600 tires for $116.62 per tire. Brightstone’s accounting system signifies that the entire price pertire is as follows:Direct supplies$54Direct labor24Manufacturing unit overhead (62% variable)24Promoting and administrative bills (44% variable)25Whole$127.00Brightstone pays a promoting fee equal to four% of the promoting worth on North American orders, whichis included within the variable portion of the promoting and administrative bills. Nevertheless, this specialorder wouldn’t have a gross sales fee. If the order was accepted, the tires can be shippedoverseas for an extra delivery price of $7.65 per tire. As well as, Euro has made the orderconditional on receiving European security certification. Brightstone estimates that this certificationwould price $165,424.Required:A. Put together a differential Assessment dated January 21 on whether or not to reject (Different 1) or settle for(Different 2) the particular order from Euro Motors. Refer to the lists of Labels and AmountDescriptions for the precise wording of the reply decisions for textual content entries. For these bins in whichyou should enter subtracted or unfavourable numbers use a minus signal. If there isn’t any quantity or anamount is zero, enter "zero". A colon (:) will routinely seem if required.B. Decide whether or not the corporate ought to reject (Different 1) or settle for (Different 2) the specialorder from Euro MotorsC. What’s the minimal worth per unit that might be financially acceptable to Brightstone?

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