Topic: BALANCE SCORECARD

Question no. 63-68

please with solution, thank you.

The next six questions are based on the following information: Following a strategy of product differentiation, Harmony Corporation makes a high-end kitchen range hood, BT4. Harmony's data for 20PY and 20CY follow: 20PY 20CY 40,000 42,000 P100 P110 120,000 123,000 P10 P11 50,000 units 50,000 units P1M P1.1 M 1. Units of BT4 produced and sold 2. Selling price 3. Direct material (square feet) 4. Direct material costs per square foot 5. Manufacturing capacity for BT4 6. Total conversion costs 7. Conversion cost per unit of capacity (Row 6 - Row 5) 8. selling and customer-service capacity 9. Total selling and customer-service costs 10. Cost per customer of selling and customer service capacity (Row 9 - Row 8) M = million P20 P22 30 customers 9 customers P720,000 P725,000 P24,000 P25,000 Harmony produced no defective units, and reduced direct material usage per unit of BT4 in 20CY. Conversion costs in each year are tied to manufacturing capacity. Sellina and customer-service costs are related to the number of customers that the selling and service functions are designed to support. Harmony has 23 customers (wholesalers) in 20PY and 25 customers in 20CY. Operating income for each year is determined as: 20PY P4,000,000 20CY P4,620,000 Revenues (P100 x 40,000; P110 x 42,000) Cost: Direct materials costs (P10 x 120,000; P11 x 123,000) Conversion costs (P20 x 50,000; P22 x 50,000) Selling & customer service costs(P24,000 x 30; P25,000 x 29) Total costs Operating income Change in operating income 1,200,000 1,000,000 1,353,000 1,110,000 720,000 2,920,000 P1,080,000 725,000 3,178,000 P1,442,000 P362,000 F P362,000 F Change in operating income 63. The change in operating income from 20PY to 20CY attributable to growth is: a. P200,000 favorable C P140,000 favorable b. P200,000 unfavorable d. P140,000 unfavorable 64. The change in operating income from 20PY to 20CY attributable to price-recovery is a. P164,000 favorable c. P256,000 unfavorable b. P420,000 favorable d. P164,000 unfavorable 65. The change in operating income from 20PY to 20CY attributable to productivity is: a. P58,000 unfavorable c. P25,000 favorable b. B. P33,000 favorable d. P58,000 favorable 66. Suppose during 20PY, then market size of high-end kitchen range hoods grew 3% in terms of number of units and all increases in market share (that is increases in the number of units sold greater than 3%) are due to Harmony's product-differentiation strategy. How much of the change in operating income from 20PY to 20CY is due to industry-market-size factor? a. P84,000 favorable c. P84,000 unfavorable b. P140,000 favorable d. P14,000 favorable 67. Suppose during 20PY, the market size for high-end kitchen range hoods grew 3% in terms of number of units and all increases in market share that is increases in the number of units sold greater than 3%) are due to Harmony's product-differentiation strategy. How much of the change in operating income from 20PY to 20CY is due to cost leadership? a. P58,000 unfavorable c. P58,000 favorable b. P33,000 favorable d. P25,000 favorable 68. 71. Suppose during 20PY, the market size for high-end kitchen range hoods grew 33 in terms of number of units and all increases in market share (that is increases in the number of units sold greater than 3%) are due to Harmony's product-differentiation strategy. How much of the change in operating income from 20PY to 20CY is due to product differentiation? a. P420,000 favorable c. P256,000 unfavorable b. P220,000 favorable d. P56,000 favorable The next six questions are based on the following information: Following a strategy of product differentiation, Harmony Corporation makes a high-end kitchen range hood, BT4. Harmony's data for 20PY and 20CY follow: 20PY 20CY 40,000 42,000 P100 P110 120,000 123,000 P10 P11 50,000 units 50,000 units P1M P1.1 M 1. Units of BT4 produced and sold 2. Selling price 3. Direct material (square feet) 4. Direct material costs per square foot 5. Manufacturing capacity for BT4 6. Total conversion costs 7. Conversion cost per unit of capacity (Row 6 - Row 5) 8. selling and customer-service capacity 9. Total selling and customer-service costs 10. Cost per customer of selling and customer service capacity (Row 9 - Row 8) M = million P20 P22 30 customers 9 customers P720,000 P725,000 P24,000 P25,000 Harmony produced no defective units, and reduced direct material usage per unit of BT4 in 20CY. Conversion costs in each year are tied to manufacturing capacity. Sellina and customer-service costs are related to the number of customers that the selling and service functions are designed to support. Harmony has 23 customers (wholesalers) in 20PY and 25 customers in 20CY. Operating income for each year is determined as: 20PY P4,000,000 20CY P4,620,000 Revenues (P100 x 40,000; P110 x 42,000) Cost: Direct materials costs (P10 x 120,000; P11 x 123,000) Conversion costs (P20 x 50,000; P22 x 50,000) Selling & customer service costs(P24,000 x 30; P25,000 x 29) Total costs Operating income Change in operating income 1,200,000 1,000,000 1,353,000 1,110,000 720,000 2,920,000 P1,080,000 725,000 3,178,000 P1,442,000 P362,000 F P362,000 F Change in operating income 63. The change in operating income from 20PY to 20CY attributable to growth is: a. P200,000 favorable C P140,000 favorable b. P200,000 unfavorable d. P140,000 unfavorable 64. The change in operating income from 20PY to 20CY attributable to price-recovery is a. P164,000 favorable c. P256,000 unfavorable b. P420,000 favorable d. P164,000 unfavorable 65. The change in operating income from 20PY to 20CY attributable to productivity is: a. P58,000 unfavorable c. P25,000 favorable b. B. P33,000 favorable d. P58,000 favorable 66. Suppose during 20PY, then market size of high-end kitchen range hoods grew 3% in terms of number of units and all increases in market share (that is increases in the number of units sold greater than 3%) are due to Harmony's product-differentiation strategy. How much of the change in operating income from 20PY to 20CY is due to industry-market-size factor? a. P84,000 favorable c. P84,000 unfavorable b. P140,000 favorable d. P14,000 favorable 67. Suppose during 20PY, the market size for high-end kitchen range hoods grew 3% in terms of number of units and all increases in market share that is increases in the number of units sold greater than 3%) are due to Harmony's product-differentiation strategy. How much of the change in operating income from 20PY to 20CY is due to cost leadership? a. P58,000 unfavorable c. P58,000 favorable b. P33,000 favorable d. P25,000 favorable 68. 71. Suppose during 20PY, the market size for high-end kitchen range hoods grew 33 in terms of number of units and all increases in market share (that is increases in the number of units sold greater than 3%) are due to Harmony's product-differentiation strategy. How much of the change in operating income from 20PY to 20CY is due to product differentiation? a. P420,000 favorable c. P256,000 unfavorable b. P220,000 favorable d. P56,000 favorable