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Can you tell me if I'm doing this right so far? 11-33 Special Order Green Grow Inc. (GGI) manufactures lawn fertilizer. Because of the product's

Can you tell me if I'm doing this right so far?

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11-33 Special Order Green Grow Inc. (GGI) manufactures lawn fertilizer. Because of the product's very high quality, GGI often receives special orders from agricultural research groups. For each type of fertilizer sold, each bag is carefully filled to have the precise mix of components advertised for that type of fertilizer GGI's operating capacity is 22,000 one- hundred-pound bags per month, and it currently is selling 20,000 bags manufactured in 20 batches of 1,000 bags each. The firm just received a request for a special order of 5,000 one-hundred-pound bags of fertilizer for $130,000 from APAC, a research organization. The n costs would be the same, but there would be no variable selling costs. Delivery and other packaging and distribution services would cause a one-time $2,500 cost for GGI. The special order would be two batches of 2,500 bags each. (No incremental batch- level costs are anticipated.) The following information is processed in d about GGI's current operations: Sales and production cost data for 20,000 bags, per bag $40 17 Sales price Variable manufacturing costs Variable selling costs Fixed manufacturing costs Fixed marketing costs 12 4 No marketing costs would be associated with the special order. Since the order would be used in research and consistency is critical, APAC requires that GGI fill the entire order of 5,000 bags

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