Ramiro & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Ramiro wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Ramiro T-shirt. Ramiro presents the following data for its first two years of operations, 2012 and 2013: 2012 2013 1 Number of T-shirts purchased 225,500 257,000 2 Number of T-shirts discarded 20,500 24,000 3 Number of T-shirts sold (row 1 (row 2) 205,000 233,000 4 Average selling price $32.00 $33.00 5 Average cost per T-shirt $17.00 $15.00 6 Administrative capacity (number of customers) 4,700 4,450 7 Administrative costs $1,739,000 $1,691,000 8 Administrative cost per customer (row 8 row 7) $370 $380 Administrative costs depend on the number of customers Ramiro has created capacity to support, not on the actual number of customers served. Ramiro had 4,300 customers in 2012 and 4,200 customers in 2013. Answer the following questions: 1. Is Ramiros strategy one of product differentiation or cost leadership? Explain. 2. Describe the key measures Ramiro should include in its balanced scorecard and the reasons for doing so.