Exercise on Strategy, balanced scorecard, merchandising operation

Can you please provide a detailed breakdown of the calculations?

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Exercise 1 Strategy, balanced scorecard. merchandising operation Denzel 8: Sons buysjerseys in bulk, applies its own trendsetting streetwear silkscreen designs, and then sells the jerseys to a number of retailers. Denzel wants to be known for its trendsetting designs, and it wants erver:,|l teenager to be seen in a distinctive Denzeljersey. Denzel presents the Following data for its first two years of operations. 2014 and 2015: I Number ofjerseys purchased m 26?,000 a Number ofjerseys discard ed 30,500 34,000 a Number ofjerseys sold {row i row 2} 205,000 23 3,000 n Average selling price $32.60 $33.40 a Average cost perjersey 51120 m a Administrative capacity (number of customers) 4,750 m Administrative costs $1,?33,750 $1,106,250 Administrative cost per customer [row 7 + row 6] $365 53T5 Administrative costs depend on the number of customers Denzel has created capacity to support, not on the actual number of customers served. Denzel had 4,300 customers in 2014 and 4,200 customers in 2015. Requirement: 1. Is Denzel's strategy one of product differentiation or cost leadership? Explain briefly. 2. Describe briefly the keyI measures Denzel should include in its balanced scorecard and the reasons For doing so. ll