Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2014, the company reported the following operating results while operating at 80% of plant capacity:

Sales (75,000 units) $6,750,000

Cost of goods sold 4,875,000

Gross profit 1,875,000

Operating expenses 750,000

Net income $1,125,000

Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed.

In October, Conklan Company receives a special order for 4,000 fireplaces at $62 each from Langston