As companies expand and become more decentralized, they will often seek ways in which they can save money. Additionally, management will seek ways to increase efficiency, and that may include purchasing other companies. These acquisitions will involve an integration of the supply chain and will help the company better achieve long$-$term company goals. Which of the following is an example of backward vertical integration?

A hot dog producer purchases a company that creates hot dog buns.

A toy company that designs all products in$-$house has acquired a company with a strong research and development department to assist in testing new products.

A factory that produces handbags has purchased a company with a fleet of trucks so they can deliver their own goods.

A customer service company purchases their largest competitor, creating a market$-$dominating entity.