(Research) Timbuk2 is a San Francisco company that makes a variety of messenger, cyclist, and laptop bags. The company’s Web site allows cus¬ tomers to design their own size, color, and fabric bags with specific features and accessories; then the company sews the bags to the customers’ specifications.

a. Visit the company’s Web site and custom design a bag. Compare the quoted price with a bag of similar quality and features at a local store. Explain whether you think the Timbuk2 bag is a good value.

b. Why would Timbuk2 be able to produce custom-made messenger bags for almost the same cost as mass-produced ones?

c. Would you expect the quality of the custom-produced messenger bags to be higher or lower than the mass-produced ones? Discuss the ratio¬ nale for your answer.

d. Why would the custom-made messenger bags show a high profit margin?

LO1.