Question $1$

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 $2013.$

$($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.

Required:

Briefly explain any ONE of the four perspectives above. $(6$ marks$).$