The accent in the instance info on the merchandise quality and workmanship. is the best described as distinction on the quality of the merchandise. In contrast. the company is more likely to win if it can go on to appeal to those clients looking for up-scale. higher quality table lamps and illuming fixtures. When utilizing distinction as the Company’s scheme. it becomes clear that keeping the Authoritative line is critical to the company’s success. Therefore. riddance of the line could damage the firm’s quality and workmanship image. and therefore ache the company’s strategic competitory advantage. Even if the Authoritative line is losing money for the company. it is of import to both retain it and to publicise it. because it is the merchandise line which most supports the company’s quality image. The authoritative line can be considered an illustration of what is sometimes called a loss leader. a merchandise or service that draws attending to the company. but which in itself is non profitable.
2-43 The Balanced Scorecard
Fiscal
Gross saless tendencies. gross revenues. by merchandise
Cost of Labor.
Tax return on investing
New investing. by merchandise line
Cost of supplies
Internal ( engineering )
Cycle clip
Productivity steps. hr per merchandise
Equipment look intoing. new machine
Inventory
Employees
Training hours. new plan. productiveness
Satisfaction
Development
Advices about the occupation
Customer
Lead clip
Retention
Satisfaction
Number of clients
Cargo and bringing
3-57. Cost of Goods Manufactured ; Income Statement
Fair Wind Yachts. Inc.
Statement of Cost of Goods Manufactured
December 31. 2013
Direct Materials Used
Direct Materials Inventory. Get downing $ 16. 000
Direct Materials Purchases $ 410. 000
Entire Direct Materials Available $ 426. 000
Direct Materials Inventory. Ending & lt ; $ 18. 000 & gt ;
Direct Materials Used in 2013 $ 408. 000
Direct Labor $ 512. 000
Factory Operating expense
Depreciation works +equipment $ 320. 000
Heat + visible radiation for works $ 22. 000
Indirect labour $ 269. 000
Insurance works $ 32. 000
Supervisors salary works $ 98. 000
Supplies works $ 132. 000
Entire Factory Overhead $ 532. 000
Entire Manufacturing Costss Incurred during twelvemonth $ 873. 000
Entire Manufactureing costs incurred $ 1. 793. 000
Work in procedure beg 31. 000
Work in process terminal & lt ; 39. 000 & gt ;
Cost of good sold. $ 1. 785. 000
$ 1. 785. 000
+beg inv. 55. 000
-End inv43. 000
Entire COGS 1. 797. 000
Fair Wind Yachts. Inc.
Income Statement
For the Year Ended December 31. 2013
Gross saless Revenue $ 2. 885. 000
Cost of Goods Sold & lt ; 1. 797. 000 & gt ;
Gross net income $ 1. 088. 000
Operating disbursals:
Depreciation –admin + office & lt ; 75. 000 & gt ;
Gross saless Salary & lt ; 325. 000 & gt ;
Supplies & lt ; 78. 000 & gt ;
Entire SG & A ; A $ 478. 000
Net income 610. 000
