Scorecard Measures, Strategy Translation At the end of 20x1, Mejorar Company implemented a low-cost strategy to...

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Scorecard Measures, Strategy Translation At the end of 20x1, Mejorar Company implemented a low-cost strategy to improve its competitive position. Its objective was to become the low-cost producer in its industry. A Balanced Scorecard was developed to guide the company toward this objective. To lower costs, Mejorar undertook a number of improvement activities such as JIT production, total quality management, and activity-based management. Now, after two years of operation, the president of Mejorar wants some assessment of the achievements. To help provide this assessment, the following information on one product has been gathered: Theoretical annual capacity* Actual production** Market size (in units sold) Production hours available (40 workers) Very satisfied customers 20x1 249,600 20x3 249,600 208,000 234,000 1,300,000 1,300,000 104,000 104,000 62,400 117,000 Actual cost per unit $340 $272 Days of inventory 16 8 Number of defective units 14,560 4,680 Total worker suggestions 80 280 Hours of training 260 1,040 Selling price per unit $190 $190 Number of new customers 5,200 25,740 *Amount that could be produced given the available production hours; everything produced is sold. Amount that was produced given the available production hours. Required: Scorecard Measures, Strategy Translation At the end of 20x1, Mejorar Company implemented a low-cost strategy to improve its competitive position. Its objective was to become the low-cost producer in its industry. A Balanced Scorecard was developed to guide the company toward this objective. To lower costs, Mejorar undertook a number of improvement activities such as JIT production, total quality management, and activity-based management. Now, after two years of operation, the president of Mejorar wants some assessment of the achievements. To help provide this assessment, the following information on one product has been gathered: Theoretical annual capacity* Actual production** Market size (in units sold) Production hours available (40 workers) Very satisfied customers 20x1 249,600 20x3 249,600 208,000 234,000 1,300,000 1,300,000 104,000 104,000 62,400 117,000 Actual cost per unit $340 $272 Days of inventory 16 8 Number of defective units 14,560 4,680 Total worker suggestions 80 280 Hours of training 260 1,040 Selling price per unit $190 $190 Number of new customers 5,200 25,740 *Amount that could be produced given the available production hours; everything produced is sold. Amount that was produced given the available production hours. Required: