ACT306A Fall Semester 2019 Graded Project Balanced Sorecard and Strategic Analysis of Operating Income Given: Jayson Company buys hoodies in bulk and then adds its own interesting designs to the front, back, and pockets of each hoodie in order to make them popular and appear particularly special; the company then re-sells the hoodies to several retailers. The Jayson Company wishes to be recognized for its trendsetting designs and desires to make itself presented in a distinctive niche for autumn and winter clothing geared to teenagers and young adults. Below are the following data for two years of operations: 2017 and 2018: 1. Number of hoodies purchased 2. Number of hoodies discarded 3. Number of hoodies sold 4. Average selling price of each hoodie 5. Average cost for each hoodie 6. Administrative capacity (based on no. of customers) 7. Administrative costs 8. Administrative cost per customer 2017 260,000 14,000 246,000 78.00 35.00 5,800 3,944,000 680.00 2018 286,000 22,000 264,000 82.00 37.00 5,700 4,104,000 720.00 $ $ $ $ Administrative costs depend upon the number of customers Jayson Company has created capacity to support, and not necessarily the actual number of customers served. REQUIRED: 1. Is Jayson Company's strategy one of product differentiation or cost leadership? Explain. 2. Describe the four Balanced Scorecard Perspectives in relation to Jayson's strategy. 3. Prepare the Operating Income Statements for 2017 and 2018 and show the change in Operating Income from 2017 to 2018. 4. Calculate the Growth Component, Price-Recovery Component, and Productvity Component. 5. Prepare the schedule showing the way in which the 3 Components changed Operating Income from 2017 to 2018. 6. Explain your results as revealed by your solution of question#5. ACT306A Fall Semester 2019 Graded Project Balanced Sorecard and Strategic Analysis of Operating Income Given: Jayson Company buys hoodies in bulk and then adds its own interesting designs to the front, back, and pockets of each hoodie in order to make them popular and appear particularly special; the company then re-sells the hoodies to several retailers. The Jayson Company wishes to be recognized for its trendsetting designs and desires to make itself presented in a distinctive niche for autumn and winter clothing geared to teenagers and young adults. Below are the following data for two years of operations: 2017 and 2018: 1. Number of hoodies purchased 2. Number of hoodies discarded 3. Number of hoodies sold 4. Average selling price of each hoodie 5. Average cost for each hoodie 6. Administrative capacity (based on no. of customers) 7. Administrative costs 8. Administrative cost per customer 2017 260,000 14,000 246,000 78.00 35.00 5,800 3,944,000 680.00 2018 286,000 22,000 264,000 82.00 37.00 5,700 4,104,000 720.00 $ $ $ $ Administrative costs depend upon the number of customers Jayson Company has created capacity to support, and not necessarily the actual number of customers served. REQUIRED: 1. Is Jayson Company's strategy one of product differentiation or cost leadership? Explain. 2. Describe the four Balanced Scorecard Perspectives in relation to Jayson's strategy. 3. Prepare the Operating Income Statements for 2017 and 2018 and show the change in Operating Income from 2017 to 2018. 4. Calculate the Growth Component, Price-Recovery Component, and Productvity Component. 5. Prepare the schedule showing the way in which the 3 Components changed Operating Income from 2017 to 2018. 6. Explain your results as revealed by your solution of question#5
