Following a strategy of product differentiation, Cold Lake Company makes a high-end appliance, AP15. Cold Lake Company presents the following data for years 1 and 2.

	Year 1	Year 2
Units of AP15 produced and sold	20,000	21,000
Selling price	$200	$220
Direct materials (square metres)	60,000	61,500
Direct materials costs per square metre	$20	$22
Manufacturing capacity for AP15 (units)	25,000	25,000
Total manufacturing conversion costs	$1,000,000	$1,100,000
Manufacturing conversion costs (per unit of capacity)	$40	$44
Selling and customer-service capacity (customers)	60	58
Total selling and customer-service costs	$360,000	$362,500
Cost per customer of selling and customer-service capacity	$6,000	$6,250

Cold Lake Company produces no defective units, but it wants to reduce direct materials usage per unit of AP15 in year 2. Manufacturing conversion costs in each year depend on production capacity, defined in terms of AP15 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. Cold Lake Company has 46 customers in year 1 and 50 customers in year 2. The industry market size for high-end appliances increased 5% from year 1 to year 2. Referring to Cold Lake Company, which of the following is a measure of the financial perspective?

Question 5Select one:

a.operating income growth from charging higher margins

b.reengineering process

c.production cycle time

d.order delivery time

e.market share in the high-end appliance market