Nicholson Co sells mobile telephones. It supplies its customers with telephones and wireless telephone connections.

Customers pay an annual fee plus a monthly charge based on calls made.

The company has recently employed a consultant to install a balanced scorecard system of performance measurement and to benchmark the results against those of Nicholson Co's competitors. Unfortunately the consultant was called away before the work was finished. You have been asked to complete the work. The following data is available.

Nicholson Co

Operating data for the year ended 30 November 2013

Sales revenue $480 million

Sales attributable to new products $8 million

Average capital employed $192 million

Profit before interest and tax $48 million

Average numbers of customers 1,960,000

Average number of telephones returned for repair each year 10,000

Number of bill queries 12,000

Number of customer complaints 21,600

Number of customers lost 117,600

Average number of telephones unrepaired at the end of each day 804

(a) Calculate the following ratios and other statistics for Nicholson Co for the year ended 30 November 2013.

(i) Return on capital employed;

(ii) Return on sales (operating margin);

(iii) Asset turnover;

(iv) Average wait for telephone repair (in days);

(v) Percentage of customers lost per annum;

(vi) Percentage of sales attributable to new products.

(34 marks)

(b) A balanced scorecard measures performance from four perspectives: customer satisfaction, growth, financial success and process efficiency.

Briefly explain any ONE of the four perspectives above.