2016 2017 200 210 40,000 $ 42,000 300,000 310,000 8.00 $ 8.50 250 250 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity in units of D4H 6. Total conversion costs 7. Conversion cost per unit of capacity (row 6 / row 5) 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity per customer (row 9 / row 8) $ 2,000,000 $ 2,025,000 $ 8,000 $ 8,100 100 customers 95 customers $ 1,000,000 $ 940,500 $ 10,000 $ 9,900 Stanmore produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2017. Conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Stanmore can support, not the actual number of customers it serves. Stanmore has 75 customers in 2016 and 80 customers in 2017. Requirements 1. Is Stanmore's strategy one of product differentiation or cost leadership? Explain briefly. 2. Describe briefly key measures that you would include in Stanmore's balanced scorecard and the reasons for doing so. Print Done Requirement 1. Is Stanmore's strategy one of product differentiation or cost leadership? Explain briefly. Stanmore Corporation follows a strategy in 2017. Stanmore's D4H machine is its competitors and generally regarded as competitors' products. To succeed, Stanmore must continue to