DS 412 Greener Pastures Incorporated (GPI) produces a high-quality

Greener Pastures Incorporated (GPI) produces a high-quality organic lawn food and weed eliminator called Super Green (SG). Super Green is sold in 50-pound bags. Monthly demand for Super Green is 75,000 pounds. Greener Pastures has capacity to produce 28,000 50-pound bags per year. The setup cost to produce Super Green is $310. Annual holding cost is estimated to be $3.00 per 50-pound bag. Currently, GP is producing in batches of 2,100 bags.
(Round your intermediate calculations to 4 decimal places, and your final answer to 2 decimal places.)

Calculate the total annual costs of the current operating policy at GPI.
$

Calculate the economic production quantity (EPQ).

bags

Calculate the total annual costs of using the EPQ.
$

Calculate the penalty cost incurred with the present policy.
$