Question 3 of 4 Sweet Acacia 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: Sales Cost of goods sold Selling and administrative expenses Net income Amount $5,616,000 3,672,000 486,000 $1,458,000 Per Unit $52.00 34.00 4.50 - /3 $13.50 Fixed costs for the period were cost of goods sold of $1,080,000, and selling and administrative expenses of $194,400. In July, normally a slack manufacturing month, Sweet Acacia receives a special order for 10,800 basketballs at $32.00 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.50 per unit because of shipping costs, but it would not increase fixed costs and expenses.

Sweet Acacia 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: Fixed costs for the period were cost of goods sold of $1,080,000, and selling and administrative expenses of $194,400. In July, normally a slack manufacturing month, Sweet Acacia receives a special order for 10,800 basketballs at $32.00 each from the Itallan Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.50 per unit because of shipping costs, but it would not increase fuced costs and expenses