The Xlevel manufactures an entry$-$level hoverboard, HOV$-$X$.$ Pursuing a cost$-$leadership strategy, the company has tried to improve quality and reduce costs. As a result of the actions taken over the last year, quality has significantly improved in $2020$ while rework and unit costs of the HOV$-$X have decreased. Xlevel has reduced manufacturing capacity because capacity is no longer needed to support rework. Xlevel has also lowered HOV$-$X$\text{'}$s selling price to gain market share and unit sales have increased.