Question
Krater Associates is an architectural firm that has been in practice only a few years. Because it is a relatively new firm, the market for
Krater Associates is an architectural firm that has been in practice only a few years. Because it is a relatively new firm, the market for the firm's services is very competitive. To compete successfully, Krater must deliver quality services at a low cost. Krater prese Architect labor-hour costs are variable costs. Architect support costs for each year depend on the Architect support capacity that Krater chooses to maintain each year (that is, the number of jobs it can do each year). Architect support costs do not vary with the actual number of jobs done that yea 1. Is Krater Associate's strategy one of product differentiation or cost leadership? Explain briefly. 2. Describe key measures you would include in Krater's balanced scorecard and your reasons for doing so. pop-up content ends PrintDone 2019 2020 1 Number of jobs billed 44 46 2 Selling price per job $36,000.00 $35,000.00 3 Architect labor-hours 19,000 30,000 4 Cost per architect labor-hour $38.00 $39.00 5 Architect support capacity (number of jobs the firm can do) 61 61 6 Total cost of software-implementation support $164,700.00 $176,900.00 7 Software-implementation support-capacity cost per job $2,700.00 $2,900.00
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