At the end of 20x1, Mejorar Company implemented a low-cost strategy to improve its competitive position. Its objective was to become the low-cost producer in its industry. A Balanced Scorecard was developed to guide the company toward this objective. To lower costs, Mejorar undertook a number of improvement activities such as JIT production, total quality management, and activity-based management. Now, after two years of operation, the president of Mejorar wants some assessment of the achievements. To help provide this assessment, the following information on one product has been gathered:

20x120x3Theoretical annual capacity*249,600249,600Actual production**208,000234,000Market size (in units sold)1,300,0001,300,000Production hours available (40 workers)104,000104,000Very satisfied customers83,200117,000Actual cost per unit$320$256Days of inventory147Number of defective units14,5604,680Total worker suggestions120280Hours of training2601,040Selling price per unit$190$190Number of new customers5,20025,740

*Amount that could be produced given the available production hours; everything produced is sold.

**Amount that was produced given the available production hours.

Required:

1.Compute the following measures for 20x1 and 20x3:

a. Actual velocity and cycle time. If required, round your answers to two decimal places.

20x120x3Actual velocityper hourper hourActual cycle timeminutesminutes

b. Percentage of total revenue from new customers (assume one unit per customer). Round your percentage answer to one decimal place (for example, enter 4.628% as "4.6").

20x1%20x3%

c. Percentage of very satisfied customers (assume each customer purchases one unit).

20x1%20x3%

d. Market share.

20x1%20x3%

e. Percentage change in actual product cost (for 20x3 only). Enter a decrease as a negative value.

20x3%

f. Percentage change in days of inventory (for 20x3 only). Enter a decrease as a negative value.

20x3%

g. Defective units as a percentage of total units produced. Round your answers to two decimal places (for example, enter 4.628% as "4.63").

20x1%20x3%

h. Total hours of training.

20x1hours20x3hours

i. Suggestions per production worker. Round your answers to one decimal place.

20x1per production worker20x3per production worker

j. Total revenue.

20x1$20x3$

k. Number of new customers.

20x120x3

2.Match the appropriate strategic objective to the measures given below.

Strategic ObjectiveMeasure

Unit cost reduction (%)

Percentage of new revenues

Revenue

Percentage of very satisfied customers

Market share

Number of new customers

Cycle time/Velocity

Percentage defects

Days of inventory

Training hours

Suggestions per worker