2018 Geeksquad Corporation (GC) makes a high-end Computer Monitor, CM12 and follows a strategy of product differentiation. Revenue and cost data for SC for 2017 and 2018 was as follows: 2017 Units of CM12 produced and sold 5,000 5,250 Selling price per unit $ 400.00 $ 450.00 Direct materials (kilograms) 15,000 15,375 Direct material costs per kilogram $ 40.00 $ 47.00 Manufacturing capacity for CM12 (units) 10,000 10,000 Total manufacturing conversion costs $ 500,000 $ 520,000 Manufacturing conversion costs per unit of capacity $ 50.00 $ 52.00 Selling and customer-service capacity (customers) 55 Total selling and customer service costs $ 180,000 $ 171,875 Cost per customer of selling & customer service capacity $ 3,000.00 $ 3,125.00 60 2018 vs 2017 Performance Report 2018 2017 Volume Variance Price Variance Efficiency Variance Total Variance Units sold 5,250 5,000 100,000 (30,000) 17,625 Revenue Direct Materials Manufacturing Conversion Costs Selling and Customer service costs Operating Income $ 2,362,500 $ 722,625 520,000 171,875 948,000 2,000,000 $ 600,000 500,000 180,000 720,000 $ 262,500 $ (110,250) (20,000) (7,500) 124,750 $ 362,500 (122,625) (20,000) 8,125 228,000 15,625 33,250 70,000 GC went through a strategic planning exercise near the end of 2017 and during that exercise identified that its quality was very good but it wanted to reduce direct materials usage per unit of CM 12 in future years. Manufacturing conversion costs in each year depend on production capacity defined in terms of CM12 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 nor customer-service costs are affected by changes in actual volume of units produced. GC had 46 customers in 2017 and 50 customers in 2018. Required: Assume you were the consultant that helped GC with its strategic planning exercise near the end of 2017. Create a relevant balanced scorecard for GC that considers its key objective of reducing direct material usage per unit and is consistent with its overall strategy of product differentiation. 2018 Geeksquad Corporation (GC) makes a high-end Computer Monitor, CM12 and follows a strategy of product differentiation. Revenue and cost data for SC for 2017 and 2018 was as follows: 2017 Units of CM12 produced and sold 5,000 5,250 Selling price per unit $ 400.00 $ 450.00 Direct materials (kilograms) 15,000 15,375 Direct material costs per kilogram $ 40.00 $ 47.00 Manufacturing capacity for CM12 (units) 10,000 10,000 Total manufacturing conversion costs $ 500,000 $ 520,000 Manufacturing conversion costs per unit of capacity $ 50.00 $ 52.00 Selling and customer-service capacity (customers) 55 Total selling and customer service costs $ 180,000 $ 171,875 Cost per customer of selling & customer service capacity $ 3,000.00 $ 3,125.00 60 2018 vs 2017 Performance Report 2018 2017 Volume Variance Price Variance Efficiency Variance Total Variance Units sold 5,250 5,000 100,000 (30,000) 17,625 Revenue Direct Materials Manufacturing Conversion Costs Selling and Customer service costs Operating Income $ 2,362,500 $ 722,625 520,000 171,875 948,000 2,000,000 $ 600,000 500,000 180,000 720,000 $ 262,500 $ (110,250) (20,000) (7,500) 124,750 $ 362,500 (122,625) (20,000) 8,125 228,000 15,625 33,250 70,000 GC went through a strategic planning exercise near the end of 2017 and during that exercise identified that its quality was very good but it wanted to reduce direct materials usage per unit of CM 12 in future years. Manufacturing conversion costs in each year depend on production capacity defined in terms of CM12 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 nor customer-service costs are affected by changes in actual volume of units produced. GC had 46 customers in 2017 and 50 customers in 2018. Required: Assume you were the consultant that helped GC with its strategic planning exercise near the end of 2017. Create a relevant balanced scorecard for GC that considers its key objective of reducing direct material usage per unit and is consistent with its overall strategy of product differentiation