=+Following a strategy of product differentiation, Westwood Ltd makes a high-end kitchen rangehood, KE8. Westwood Ltd’s data for 2014 and 2015 follow:

2014 2015 1 Units of KE8 produced and sold 40 000 42 000 2 Selling price $100 $110 3 Direct materials (square metres, m2

) 120 000 123 000 4 Direct materials cost per square metre $10 $11 5 Manufacturing capacity for KE8 50 000 units 50 000 units 6 Conversion costs $1 000 000 $1 100 000 7 Conversion cost per unit of capacity (row 6 ÷ row 5) $20 $22 8 Selling and customer-service capacity 30 customers 29 customers 9 Selling and customer-service costs $720 000 $725 000 10 Cost per customer of selling and customer-service capacity (row 9 ÷ row 8) $24 000 $25 000 Westwood Ltd produced no defective units and reduced direct materials usage per unit of KE8 in 2015. Conversion costs in each year are tied to manufacturing capacity. Selling and customer-service costs are related to the number of customers that the selling and service functions are designed to support. Westwood Ltd had 23 customers (wholesalers) in 2014 and 25 customers in 2015.

604 Chapter 15: Strategy, balanced scorecard and strategic profitability analysis M15_HORN3377_02_LT_C15.indd 604 2/09/13 3:56 PM Required 1 Describe briefly the elements you would include in Westwood Ltd’s balanced scorecard.