This paper explores the economic considerations for vertical integration for Carbolite Foods Incorporated with Tsudis Chocolate Company, Incorporated. The central issues analyzed are whether risk reduction, value addition and other benefits of vertical integration warrant the cost of purchasing Tsudis Chocolate Company. The paper utilizes the Net Present Value approach to determine the economics of purchasing Tsudis Chocolate Company. The purchase price is compared to the current cost of purchasing manufactured goods from contract operation facilities. A wide variety of Carbolite and externally manufactured item volumes are compared in the analysis. Future product growth areas are considered. A final recommendation, time line and follow-up plan are also outlined.