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Sheridan Company supplies schools with floor mats to use in physical education classes. Sheridan has received a special order from a large school district

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Sheridan Company supplies schools with floor mats to use in physical education classes. Sheridan has received a special order from a large school district to buy 684 mats at $45 each. Acceptance of the special order will not affect fixed costs but will result in $1,368 of shipping costs. For the first 6 months of 2022, the company reported the following operating results while operating at 80% capacity: Sales (114,000 units) $7,980,000 Cost of goods sold 4,788,000 Gross profit 3,192,000 Operating expenses 2,280,000 Net income $912,000 Cost of goods sold was 75% variable and 25% foxed; operating expenses were 70% variable and 30% foxed.

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