'Other updating cost of $450 Pci two-bottle set is a constant and docs not v.uv with the amount spent on quality.

638 directors sets the scale for each of the four metrics. For example, the financial performance metric is economic value added, or EVA, Last year's EVA was $13 million. The compensation committee sets the lower and upper bound of EVA as SI 2 million and $I6 million. Hence, if the current year's EVA is $I2 million, the financial performance metric is 0. If EVA is $15 million, the metric is 0.75 [($15 $I2)/($16 12)]. Ami the manager earning the $400,000 salary would receive a bonus of

$37,500 (50% x $400,000 x 0.75 X 25%).

Fourteen separate metrics are used to compute the four metrics. The following metrics ate com pitted Ami then aggregated to form the four metrics Customer Service Human Resources and Innovation Operational Efficiency Financial Performance Returns New products On-time production EVA

Customer complaints Percent of new products developed on time and on budget Unit manufacturing cost

On-site customer training seminars Employee satisfaction Safety accidents

Shipping errors Employee turnover Employee training Dollars of scrap

Lush lias been using the balanced scorecard for three years and the achieved levels of each metric for the last three years arc:

Customer Service Human Resources and Innovation Operational Efficiency Financial Performance

2015 0.86 0.77 0.76 0.79

2016 0.92 0.91 0.82 0.73

2017 0.95 094 0.94 0.69

can i get brief explanation of memo to your acquisition team describing balanced scorecards and the primary reasons they are used, and the likely effect of Lush's use of the balanced scorecard in terms of how Fiedler should be evaluating Lush. Specifically: (a) briefly describe balanced scorecards and why firms use them, and