At the end of 2009, Activo Company implemented a low-cost strategy to improve its competitive position. Its objective was to become the low-cost producer in its industry.

A Balanced Scorecard was developed to guide the company toward this objective. To lower costs, Activo undertook a number of improvement activities such as JIT production, total quality management, and activity-based management. Now, after two years of operation, the president of Activo wants some assessment of the achievements. To help provide this assessment, the following information on one product has been gathered:

Required:
1. Compute the following measures for 2009 and 2011:LO1

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2009 2011 Theoretical annual capacity* 124,800 124,800 Actual production** 104,000 117,000 Market size (in units sold) 650,000 650,000 Production hours available (20 workers) 52,000 52,000 Very satisfied customers 41,600 70,200