How would your answer change if the lifetime was longer or shorter? There are several factors that XM needs to consider when determining their pricing options. XM’s first choice of distribution was to partner with aftermarket manufacturers and determine the best vendors to produce XM satellite radios...
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Each manufacturer has different operating costs and desired margins. Therefore, XM needs to determine which manufacturers can provide these radios at the optimal price point for consumers. Moreover, XM needs to factor in the necessary installation costs consumers will incur for these systems will need to be put in via installation specialists like Best Buy and Circuit City...
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