Tostitos Medium Chunky Hot Sals Case Study

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Tostitos Medium Chunky Hot Salsa is the prime choice of salsa made with all natural ingredients: diced tomato, onions, garlic, and a generous helping of jalapeño pepper in order to give that bold and spicy taste. Its versatility is endless! It is normally used as a topping for favorite appetizers when watching the big game, celebrating special occasions, or even as simple yet delicious snack when combined with Tostitos tortilla chips™ and dips. This product is made and distributed by Frito-Lay Inc in Plano TX.

In Miami, Florida the time period between spring and summer, many people have in an increase of demand for this product. Demand can be interpreted by how much the consumer is willing to pay for an additional unit or the previous unit
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This “ability” is defined on whether or not the producer has the appropriate amount of resources to make an item. What opportunity cost can a producer encounter? if there was a blight on a certain key ingredient for the salsa let’s say tomatoes to make them diced and into tomato puree, the producer will be at a crossroad since he/she will have to decide what trade-off has to be calculated. Note that the producer's goal is to make a profit. The producer might need to determine the value of this ingredient. Is it worth buying tomatoes from a different market that would be sold at a higher price due to the demand because of the blight or invest into a different ingredient to make other salsa? What about investing already into a different ingredient that’s not used for salsa but rather for chips? It seems that the producer might not be able to supply more of this good for the current season but the next best alternative might be the best solution for this situation: making a different salsa that doesn’t require tomatoes or making more chips. The following list is what the producer must consider to make this

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