Question $6$

Julie's Patisserie Ltd is in the process of developing the four perspectives used by the Balanced Scorecard to help monitor performance; the following eight performance indicators have been suggested:

$1.$ Return on capital employed.

$2.$ Percentage of revenue from new products.

$3.$ Percentage of business from existing customers.

$4.$ Training costs as a percentage of total costs.

$5.$ Quality assurance as a percentage of revenue.

$6.$ Admin & distribution costs as a percentage of revenue.

$7.$ Customer support as a percentage of revenue.

$8.$ Operating profit as a percentage of revenue.

The following information has been extracted taken from the financial statements of Julie's Patisserie Ltd for the last year, together with other financial data and additional analysis of revenue and costs.

$\text{'}$m

Revenue $25\mathrm{.}62$

Cost of sales $(11\mathrm{.}36)$

Gross profit $14\mathrm{.}26$

Admin & distribution costs $(8\mathrm{.}54)$

Operating profit $5\mathrm{.}72$

$\text{'}$m

Capital employed $19\mathrm{.}60$

Revenue:

Existing products $15\mathrm{.}56$

New products $10\mathrm{.}06$

Sales to existing customers $19\mathrm{.}87$

Sales to new customers $5\mathrm{.}75$

Costs:

Research & development $3\mathrm{.}54$

Training $3\mathrm{.}47$

Customer support costs $4\mathrm{.}55$

Quality assurance $2\mathrm{.}67$

Other costs $5\mathrm{.}67$

Required:

a$)$ Identify the four perspectives used by the balanced scorecard and, from the list of eight performance indicators listed above, allocate them correctly to their corresponding perspective.

$(6$ marks$)$

Continued Over

b$)$ Using the financial data provided, calculate the eight performance indicators for Julie's Patisserie Ltd$.$ Marks are awarded for your workings. Present your answers to two decimal places.