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Required information [ The following information applies to the questions displayed below. ] Green Grow Incorporated ( GGI ) manufactures lawn fertilizer. Because of the
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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. GGls operating capacity is onehundredpound bags per month, and it currently is selling bags manufactured in batches of bags each. The firm just received a request for a special order of onehundredpound bags of fertilizer for $ 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 onetime $ cost for GGI The special order would be processed in two batches of bags each. No incremental batchlevel costs are anticipated. Most of the batchlevel costs in this case are shortterm fixed costs, such as salaries and depreciation. The following information is provided about GGls current operations:
tableSales and production cost data for bags, per bag:,Sales price,$
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