Geeksquad Corporation (GC) makes a high-end Computer Monitor, CM12 and follows a strategy of product differentiation. Revenue and cost data for SC for 2017 and 2018 was as follows: 2017 2018 Units of CM12 produced and sold 5.000 5.250 $400 Selling price $450 15,000 Direct materials (kilograms) 15.375 Direct materials costs per kilogram $47 $40 10.000 Manufacturing capacity for CM12 (units) 10.000 $500,000 $50 60 Total manufacturing conversion costs $520,000 Manufacturing conversion costs per unit of capacity $52 Selling and customer-service capacity (customers) 55 Total selling and customer-service costs $171.875 Cost per customer of selling & customer-service capacity $3.125 $180,000 $3.000 GC went through a strategic planning exercise near the end of 2017 and during that exercise identified that its quality was very good but it wanted to reduce direct materials usage per unit of CM12 in future years. Manufacturing conversion costs in each year depend on production capacity defined in terms of CM12 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 of units produced. GC had 46 customers in 2017 and 50 customers in 2018. Required: Assume you were the consultant that helped GC with its strategic planning exercise near the end of 2017. Create a relevant balanced Scorecard for GC that considers its key objective of reducing direct material usage per unit and is consistent with its overall strategy of product differentiation (8 marks) 2017 5,000 400.00 $ 15,000 40.00 $ 2018 5,250 450.00 15,375 47.00 10,000 520,000 52.00 Units of CM12 produced and sold Selling price per unit $ Direct materials (kilograms) Direct material costs per kilogram $ Manufacturing capacity for CM12 (units) Total manufacturing conversion costs $ Manufacturing conversion costs per unit of capacity $ Selling and customer-service capacity (customers) Total selling and customer service costs $ Cost per customer of selling & customer service capac $ 10,000 500,000 $ 50.00 $ 60 180,000 $ 3,000.00 $ 55 171,875 3,125.00 Geeksquad Corporation (GC) makes a high-end Computer Monitor, CM12 and follows a strategy of product differentiation. Revenue and cost data for SC for 2017 and 2018 was as follows: 2017 2018 Units of CM12 produced and sold 5.000 5.250 $400 Selling price $450 15,000 Direct materials (kilograms) 15.375 Direct materials costs per kilogram $47 $40 10.000 Manufacturing capacity for CM12 (units) 10.000 $500,000 $50 60 Total manufacturing conversion costs $520,000 Manufacturing conversion costs per unit of capacity $52 Selling and customer-service capacity (customers) 55 Total selling and customer-service costs $171.875 Cost per customer of selling & customer-service capacity $3.125 $180,000 $3.000 GC went through a strategic planning exercise near the end of 2017 and during that exercise identified that its quality was very good but it wanted to reduce direct materials usage per unit of CM12 in future years. Manufacturing conversion costs in each year depend on production capacity defined in terms of CM12 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 of units produced. GC had 46 customers in 2017 and 50 customers in 2018. Required: Assume you were the consultant that helped GC with its strategic planning exercise near the end of 2017. Create a relevant balanced Scorecard for GC that considers its key objective of reducing direct material usage per unit and is consistent with its overall strategy of product differentiation (8 marks) 2017 5,000 400.00 $ 15,000 40.00 $ 2018 5,250 450.00 15,375 47.00 10,000 520,000 52.00 Units of CM12 produced and sold Selling price per unit $ Direct materials (kilograms) Direct material costs per kilogram $ Manufacturing capacity for CM12 (units) Total manufacturing conversion costs $ Manufacturing conversion costs per unit of capacity $ Selling and customer-service capacity (customers) Total selling and customer service costs $ Cost per customer of selling & customer service capac $ 10,000 500,000 $ 50.00 $ 60 180,000 $ 3,000.00 $ 55 171,875 3,125.00