7. Games Galore An analysis of the competition suggests that the average retail selling price of an electronic game is $89.00. Games Galore store has an opportunity to purchase 5 dozen of these games at a delivered price of $55.00 per unit. Their normal mark-up on games is 45%. a. Should they make the purchase? Why or why not? (Give reasons to support your decision) b. How does their normal markup and the "deal" mark-up compare against industry benchmark? C. If you were the marketing manager for Games Galore, what pricing strategy would you recommend? Explain your answer comparing the financial impact of alternatives. A template is provided. Current Option 1: Option 2: Option 3 Business At the Deal Price reduction (BASE) Keep Price but maintain same the same net profit Quantity 60 Selling Price (Q*SP) $89 $89 Variable Cost/unit $55 $55 $55 Contribution Total Sales COGS Gross Profit Mark-up % 45% 45% Gross Margin* BE Profit Target (units) *Industry Hobby Toys and Games at 41.4% GM