Following a strategy of product differentiation, Sting Corporation makes a high-end computer monitor, CM7.Sting Corporation presents the following data for the years 2018 and 2019:
Sting Corporation wants to reduce direct materials usage per unit of CM7 in 2019.Manufacturing conversion costs in each year depend on production capacity defined in terms of CM7 units that can be produced.Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support.Sting Corporation has 100 customers in 2018 and 115 customers in 2019.The industry market size for high-end computer monitors increased 5% from 2018 to 2019.Required:
a.Calculate the effect on the change of operating income as a result of the productivity component. c.What is the total factor productivity for 2019 and the total factor productivity benchmark based on input costs that would have been used in 2018 to produce 2019 output?(round to 4 decimal places)
d.Provide two key success factors, and a corresponding measure for each, that relate to Sting Corporation's internal business process balanced scorecard perspective.

Question

Following a strategy of product differentiation, Sting Corporation makes a high-end computer monitor, CM7.Sting Corporation presents the following data for the years 2018 and 2019:
  Sting Corporation wants to reduce direct materials usage per unit of CM7 in 2019.Manufacturing conversion costs in each year depend on production capacity defined in terms of CM7 units that can be produced.Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support.Sting Corporation has 100 customers in 2018 and 115 customers in 2019.The industry market size for high-end computer monitors increased 5% from 2018 to 2019.Required:
a.Calculate the effect on the change of operating income as a result of the productivity component.  c.What is the total factor productivity for 2019 and the total factor productivity benchmark based on input costs that would have been used in 2018 to produce 2019 output?(round to 4 decimal places)
d.Provide two key success factors, and a corresponding measure for each, that relate to Sting Corporation's internal business process balanced scorecard perspective.

Quizplus · Accepted Answer

The Answer of Following a strategy of product differentiation, Sting Corporation makes a high-end computer monitor, CM7.Sting Corporation presents the following data for the years 2018 and 2019:
  Sting Corporation wants to reduce direct materials usage per unit of CM7 in 2019.Manufacturing conversion costs in each year depend on production capacity defined in terms of CM7 units that can be produced.Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support.Sting Corporation has 100 customers in 2018 and 115 customers in 2019.The industry market size for high-end computer monitors increased 5% from 2018 to 2019.Required:
a.Calculate the effect on the change of operating income as a result of the productivity component.  c.What is the total factor productivity for 2019 and the total factor productivity benchmark based on input costs that would have been used in 2018 to produce 2019 output?(round to 4 decimal places)
d.Provide two key success factors, and a corresponding measure for each, that relate to Sting Corporation's internal business process balanced scorecard perspective.

Following a Strategy of Product Differentiation, Sting Corporation Makes a High-End