Exam 13: Strategy, Balanced Scorecard, and Profitability Analysis

Distance Company has been unhappy with the financial accounting variances that its cost accounting system has been producing, because its managers believe that there is more to evaluating an operation than just examining accounting numbers. Therefore, it has started gathering data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of remote control units for televisions, radios, and stereo components: Required: a. What is the partial productivity of direct materials for each year? b. What is the partial productivity of direct manufacturing labour for each year? c. Did each area improve between Year 1 and Year 2? Explain. d. What will be the projected direct material and labour needs for Year 3 if remote control units increase by 12,000 units, assuming Distance Company applies the constant returns to scale technology?

Use the information below to answer the following question(s). Following a strategy of product differentiation, Barry Company makes an XX 300. Barry Company presents the following data for the years 1 and 2. Barry Company produces no defective units but it wants to reduce direct materials usage per unit of XX 300 in year 2. Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Neither conversion costs or customer-service costs are affected by changes in actual volume. Barry Company has 23 customers in year 1 and 25 customers in year 2. The industry market size for high-end appliances increased 5% from year 1 to year 2. -What is the Barry Company's operating income in year 2?

Wondergardens Ltd. operates amusement parks similar to those such as Six Flags, Universal Studios, Disneyland etc. Wondergardens' mission is to provide high quality family entertainment that exceed guests' expectations and will create lifelong memories. To achieve this goal, Wondergardens strives to provide safe, clean, friendly family environments at reasonable prices. In addition to the amusement parks, the company operates a community outreach program. Through volunteerism, it offers educational and recreational programs (e.g. after school programs for children and teenagers, employment related training for adults) and special events at its facilities. Wondergardens' president, Roland Coaster, has asked you to lead a team of employees in developing a balanced scorecard for its parks. Required: For each balanced scorecard perspective identify two measures of performance that relate to Wondergardens' key success factors.