14-15 Strategy, balanced scorecard, merchandising operation. Raneiro & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Raneiro wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Raneiro T-shirt. Raneiro presents the following data for its first 2 years of operations, 2011 and 2012. 2011 2012 2. 1. Number of T-shirts purchased Number of T-shirts discarded 213,060 253,000 12,060 14,500 3. Number of T-shirts sold (row 1 - row 2) 201,000 bentupat 238,500 4. Average selling price $28.00 $29.00 5. Average cost per T-shirt $13.00 $11.00 6. Administrative capacity (number of customers) 4,300 4,050 7. Administrative costs $1,419,000 $1 $1,377,000 8. Administrative cost per customer (row 7+ row 6) $330 $340 benlupeR Administrative costs depend on the number of customers that Raneiro has created capacity to support, not on the actual number of customers served. Raneiro had 3,900 customers in 2011 and 3,800 customers in 2012. 1. Is Raneiro's strategy one of product differentiation or cost leadership? Explain briefly. 2. Describe briefly the key measures Raneiro should include in its balanced scorecard and the reasons it should do so. Required dred