Noles is a technology-oriented company supporting the cellular phone industry. The company manufactures three products at two facilities. The first product is a phone case that is specific to a particular phone model and is sold to wholesalers (approximately 20 percent of total sales). The cases are ultimately sold in big box electronic stores. The second product is a mass-produced AC adapter that is sold to cell phone manufacturers for inclusion when the cell phone is purchased(approximately 30 percent of total sales). Both of these products have narrow margins (5 percent to
10 percent) and the company does not possess any strategic advantages with respect to
manufacturing these products.