(Answered) : Texmex Foods Operates Plant Irving Texas Manufacturing Taco Sauce Used Fast Food Restauran Q31932759

TexMex Foods operates a plant in Irving, Texas, formanufacturing Taco sauce used in fast food restaurants. The sauce,which is packaged in plastic containers, is made from a specialrecipe that includes tomato concentrate, onions and chile peppersthat TexMex purchases from various suppliers. The plant operates365 days a year and TexMex uses an annual holding cost rate of 18%.Tomato Concentrate TexMex Foods purchases its tomato concentratefrom Hunt farms. The company requires 2500 gallons of concentrateper day to manufacture this sauce. Hunt Farms offers customers thefollowing all units price discount schedule: Number of GallonsOrdered 1 – 9999 10,000 – 49,999 50,000 – 124,999