Problem 11-33 and 11-34 (Algo) Special Order; ABC Costing [LO 11-2, 11-8] [The following information applies to the questions displayed below.] Green Grow Incorporated (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 40,000 one-hundred-pound bags per month, and it currently is selling 38,000 bags manufactured in 38 batches of 1,000 bags each. The firm just received a request for a special order of 8,600 one-hundred-pound bags of fertilizer for $250,000 from APAC, a research organization. The production 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 $5,300 cost for GGI. The special order would be processed in two batches of 4,300 bags each. (No incremental batch-level costs are anticipated. Most of the batch-level costs in this case are short-term fixed costs, such as salaries and depreciation.) The following information is provided about GGI's current operations: Sales price Variable manufacturing costs Sales and production cost data for 38,000 bags, per bag: $ 46 21 3 Fixed manufacturing costs 16 4 Variable selling costs Fixed marketing costs No marketing costs would be associated with the special order. Because the order would be used in research and consistency is critical, APAC requires that GGI fill the entire order of 8,600 bags. Assume that the $16.00 fixed manufacturing overhead cost per unit consists of facility-level costs ($13.00/unit at the 38,000-unit output level), with the remainder being setup-related (i.e., batch-level) costs. Assume that the setup-related costs increase in total with the number of batches produced and that the facility-level fixed costs do not vary in total, with either the number of units produced or the number of batches produced during a period.