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Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2020,...

Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2020, the company reported the following operating results while operating at 90% of plant capacity:
Amount Per Unit
Sales $5,616,000 $52.00
Cost of goods sold 3,672,000 34.00
Selling and administrative expenses 486,000 4.50
Net income $1,458,000 $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, Pro Sports receives a special order for 10,800 basketballs at $32 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.

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