Novak Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at 90% of plant capacity: Amount Per Unit Sales $5,220,000 $50.00 Cost of goods sold 3,654,000 35.00 Selling and administrative expenses 396,720 3.80 Net income $1,169,280 $11.20 Fixed costs for the period were cost of goods sold of $1,044,000, and selling and administrative expenses of $187,920. In July, normally a slack manufacturing month, Novak receives a special order for 10,440 basketballs at $30.00 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.75 per unit because of shipping costs, but it would not increase fixed costs and expenses.