An analysis of the competition suggests the average retail selling price of an electronic game is $89. The owner of a computer accessories store has a chance to purchase 5 dozen of these games at a delivered cost of $55 per unit. Her normal margin on electronic games is 35%. Should she make the purchase? Why? Why not?

Phoenix guitars is interested in pursuing backward integration to take greater ownership of the extraction of raw materials and production of components used in its signature line of guitars. although this approach would lower the overall cost of producing a guitar, the costs associated with producing electronic pickupsfor sound amplification are far greater than those associated with sourcing pickups from a reliable supplier. which of the following approaches is likely to produce superior results? a) invest in vertical integration despite the cost of producing pickups.b) abandon the idea of vertical integration entirely.c) pursue taper integration.d) introduce a budget line of guitars to diversify the firm's offerings.