Decision on Accepting Additional Business Brightstone Tire and Rubber Company has capacity to produce...

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Accounting

Decision on Accepting Additional Business
Brightstone Tire and Rubber Company has capacity to produce 221,000 tires. Brightstone presently produces and sells 169,000 tires for the North American market at a price of $105 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 26,000 tires for $88.15 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows:
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