Lock & Load Ltd is an Australian company that manufactures small numbers of high-quality firearms for sporting shooters. Their most sought-after product, the DJ-500, is a pistol preferred by Olympic pistol shooting competitors. This case study will focus on the DJ-500.

Lock & Load Ltd makes no defective DJ-500 pistols and insists upon sourcing the highest quality materials and craftsmanship. Because of the artisanal nature of production, Lock & Load Ltd plan their costs on capacity rather than historical costs or actual activity. Conversion costs depend upon production capacity, not the actual number of units produced. Selling and customer service costs depend on the number of customers that can be supported, not the actual number of customers.

Lock & Load Ltd sell only to reputable suppliers of professional and sporting firearms. Their market analysis suggests that there are only about 45 of these suppliers in Australia, and international trade restrictions make the export of firearms difficult and costly.

The following table relates to Lock & Load Ltd's performance data for 2019 and 2020:

Financial Data	2019	2020
Customers	35	40
Units produced and sold	350	400
Selling price	$3,000	$3,150
Direct Materials (kg)	3000	3200
DM cost per kilogram	$19.50	$20
Practical manufacturing capacity (units)	450	450
Total conversion costs	$39,600	$40,000
Conversion indirect overhead cost per unit of capacity	$88	$90
Customer service capacity (customers)	45	45
Total selling and customer service costs	$33,750	$31,500
Selling and customer service cost allocation rate per customer	$750	$750
Other performance data
Staff training days	50	85
Defective components returned to suppliers	250	50
Deliveries to customers delayed due to supplier problems	15	2
Direct Materials (kg) wasted due to production problems	500	75
Hours spent in quality checks of direct materials received	750	250
Turnover of staff	10	5
Innovation workshop days for staff to attend	2	10
Staff suggestions for improvements	5	15
Sold items returned by customers	150	125
Repeat orders by customers	200	180
Positive reviews by shooters in online forums	150	100

Required:

1. Provide a comparative analysis for each of Lock & Load Ltd's four Balanced Scorecard perspectives. This must include a reconciliation of Lock & Load Ltd's profitability between 2019 and 2020, using the variances applicable to growth and productivity strategies
2. Identify the linkages between the four perspectives
3. Briefly state your conclusions about Lock & Load Ltd's progress with their growth and productivity strategy