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P20-22A: MAKING SPECIAL ORDER AND PRICING DECISIONS Green Thumb operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Green
P20-22A: MAKING SPECIAL ORDER AND PRICING DECISIONS Green Thumb operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Green Thumb has $4,800,000 in assets. Its yearly fixed costs are $600,000, and the variable costs for the potting soil, container, label, seedling, and labor for each gallon-size plant total $1.35. Green Thumb's volume is currently 470,000 units. Competitors offer the same plants, at the same quality, to garden centers for $3.60 each. Garden centers then mark them up to sell to the public for $9 to $12, depending on the type of plant. 1. Green Thumb's owners want to earn a 10% return on the company's assets. What is Green Thumb's target full cost
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