E5.4 (LO 3), AP One of the most popular phone accessory companies, X Factor, has a reputation for unique Evaluate a make-versus-buy decision designs for its phone cases. Its cases fit any version of all the prominent manufacturers' phones. The com- considering quantitative and petition in this market is becoming fierce, with phone manufacturers spending big money on their own qualitative information. accessories. X Factor is unsure if it should continue to manufacture the phone cases or outsource them to simplify operations. Manufacturing costs for X Factor are as follows; these costs support one cycle of production that yields 1,200 phone cases: If X Factor decides to purchase the cases, $60,000 of the fixed-MOH costs will be unavoidable. Required a. At what price would X Factor be indifferent about making its own phone cases versus buying from a supplier? b. What qualitative factors must also be considered in this decision? c. If X Factor could purchase similar quality phone cases from a supplier for $24 each, how much additional savings would it need to find in its fixed costs for this to be an equally attractive quantitative option? E5.5 (LO 3), AP Sudsy, Inc., a producer of shower products, is evaluating the profitability of its men's, women's, Evaluate a keep-or-drop decision and children's product lines. According to the information below, the men's category is unprofitable. considering quantitative and qualitative information