GAC Produce Co., Inc., An Arizona Corporation - Page 17




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         55 cents per box during the years in issue.11  Petitioner's per-              
         box commission rate was not affected by produce price                         
         fluctuations.                                                                 
              In 1992, petitioner received a commission of 12 percent of               
         gross sales for produce distributed for Productora in the Baja                
         under the SCP contract.                                                       
              In negotiating the SCP contract on behalf of petitioner, Mr.             
         Maldonado reviewed petitioner's general accounting and production             
         records and considered petitioner's fixed costs, its costs per                
         box, the number of packs petitioner had sold in previous years,               
         its previous years' income, and the available projections.                    
              Dole's representatives prepared budgets and projections for              
         the SCP deal from data, including information on volume and                   
         production, supplied by Mr. Canelos's farming operations.  SCP                
         incorporated the data into budget books which gave annual and                 
         historical data on the SCP deal.  The Canelos brothers and Mr.                
         Maldonado reviewed the data in the budget books for 1983 through              
         1993.  The Canelos brothers, Mr. Maldonado, and representatives               


               11By oral agreement, the commission rate was amended                    
          commencing with the 1988-89 growing season as follows:                       
          Number of boxes           Commission per box                                 
               14,000,000 or greater              $.35                                 
               12,000,000 to 13,999,999            .40                                 
               10,000,000 to 11,999,999            .45                                 
               8,000,000 to 9,999,999              .50                                 
               Less than 8,000,000                 .55                                 




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