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1)Frijo-Lane Food Products own farms in the Southwest and Midwest, where it grows and harvests potatoes. It then ships these potatoes to three processing plants

1)Frijo-Lane Food Products own farms in the Southwest and Midwest, where it grows and harvests

potatoes. It then ships these potatoes to three processing plants in Atlanta, Baton Rouge,

and Chicago, where different varieties of potato products, including chips, are produced.

Recently, the company has experienced growth in its product demand, so it wants to buy one

or more new farms to produce more potato products. The company is considering six new farms

with the following annual fixed costs and projected harvest:

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