CT-1 LO 2 Freedmen Gort Company manufactures auto parts. In just one year, Freedmen went from a net profit of $20,000 to $35,000. The company provides the following balanced scorecard: Target Performance for 2019 Actual Performance for 2019 Financial Perspective Increase profits Gross profit margin 20% 35% Return on equity 15% 16% Customer Perspective Customer satisfaction Retention rate. 75% 85% Market share Market share of total 8% 10% Internal Processes Perspective Improve product quality Defect rate 4 2 Number of major improve- Improve processes ments in manufacturing processes 4 4 Learning and Growth Perspective Percentage of employee sug- Employee empowerment 25% gestions implemented Employee satisfaction rating 17 30% 9 Using the information on their balanced scorecard, explain how its financial performance improved in the past year