Methuen Corporation makes a special-purpose machine, D4H, used in the textile industry. Methuen has designed the D4H machine for 2020 to be distinct from its competitors. It has been generally regarded as a superior machine. Methuen presents the following data for 2019 and 2020. B (Click the icon to view the data.) (Click the icon to view additional data.) Read the requirements. Requirement 1. Is Methuen's strategy one of product differentiation or cost leadership? Explain briefly. its competitors and generally regarded as Methuen Corporation follows a strategy in 2020. Methuen's D4H machine is competitors' products. To succeed, Methuen must continue to Requirements 1. Is Methuen's strategy one of product differentiation or cost leadership? Explain briefly. 2. Describe briefly key measures that you would include in Methuen's balanced scorecard and the reasons for doing so. More info Methuen produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2020. Conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Methuen can support, not the actual number of customers it serves. Methuen has 79 customers in 2019 and 84 customers in 2020. Data table 2019 2020 200 210 $ 45,000 43,000 $ 310,000 317,500 $ 7.25 $ 8.00 275 275 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity in units of D4H 6. Total conversion costs 7. Conversion cost per unit of capacity 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity per customer $ 2,145,000 $ 7,800 $ 2,172,500 7,900 $ 95 customers 90 customers $ 900,000 1,045,000 $ 11,000 $ $ 10,000 Methuen Corporation makes a special-purpose machine, D4H, used in the textile industry. Methuen has designed the D4H machine for 2020 to be distinct from its competitors. It has been generally regarded as a superior machine. Methuen presents the following data for 2019 and 2020. B (Click the icon to view the data.) (Click the icon to view additional data.) Read the requirements. Requirement 1. Is Methuen's strategy one of product differentiation or cost leadership? Explain briefly. its competitors and generally regarded as Methuen Corporation follows a strategy in 2020. Methuen's D4H machine is competitors' products. To succeed, Methuen must continue to Requirements 1. Is Methuen's strategy one of product differentiation or cost leadership? Explain briefly. 2. Describe briefly key measures that you would include in Methuen's balanced scorecard and the reasons for doing so. More info Methuen produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2020. Conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Methuen can support, not the actual number of customers it serves. Methuen has 79 customers in 2019 and 84 customers in 2020. Data table 2019 2020 200 210 $ 45,000 43,000 $ 310,000 317,500 $ 7.25 $ 8.00 275 275 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity in units of D4H 6. Total conversion costs 7. Conversion cost per unit of capacity 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity per customer $ 2,145,000 $ 7,800 $ 2,172,500 7,900 $ 95 customers 90 customers $ 900,000 1,045,000 $ 11,000 $ $ 10,000
