I believe that progression is correct.
The written note shows the next step. Once your photo was approved, they made a smaller negative and a print from that smaller negative. Probably to verify if it still looked ok small.
That smaller negative may have been used to make the mask for the black color plate.
The same thing would have been done for other sets that use the same image. I'm thinking it's the same one from the RC cola sets, and maybe others.
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