Monica's Mantles has a strategic

objective of offering high quality

mantles to discerning customers

who are prepared to pay a premium

price. The financial section of the

balanced scorecard includes $\%$

reduction in cost of sales per unit".

This is

a good thing, as reduced cost of

sales increases gross margin $\%$ and

is in line with strategic objectives

a bad thing, as reduced cost of

sales may increase gross margin $\%,$

but it is not in line with strategic

objectives

a good thing, as it enables price

reductions and sales volume

increases

a bad thing, as profitability will

decline

neither a good thing or a bad thing