SheridanInc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at 80% of plant capacity and producing119,800units.

Amount

Sales

$4,792,000Cost of goods sold

3,542,888Selling and administrative expenses

475,382Net income

$773,730

Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $225,000.

In July, normally a slack manufacturing month,Sheridanreceives a special order for10,000basketballs at $27each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.74per unit because of shipping costs but would not increase fixed costs and expenses.