QUESTION1. Identify applicable key performance objectives and/or measures for the balanced scorecard of MetroCorporation. Explain briefly how your cited objectives/ measures can affect the financial performanceof the company.2. Calculate the productivity component that explains the change in operating income from 20X2 and20X3. Metro Corporation makes a special-purpose machine called "OM" used in the textile industry. Metro hasdesigned the OM machine for 20X3 to be distinct from its competitors with a premium price. It has beenregarded as a superior machine. The company presents the following data for the years 20X2 and 20X3.20X220х31. Units of OM produced and sold2. Selling price3. Direct materials (kilograms)4. Direct materials cost per kilogram5. Manufacturing capacity in units of an OM200210P40,000300,000P42,000310,000P8.50P82502506. Total conversion costsP2,000,000P8,000P2,025,000P8,1007. Conversion costs per unit of capacity8. Selling and customer-service capacity9. Total selling and customer-service costs10. Selling and customer-service capacity cost per customer11. Design staff12. Total design costs13. Design costs per employee100 customers95 customersP1,000,000P10,000P940,500P9,9001212P1,200,000P1,212,000P100,000P101,000Metro produces no defective machines, but it desires to reduce direct materials usage per OM machine in20X2. Conversion costs in each year depending on production capacity defined in terms of OM units that canbe produced, not the actual units of OM produced. Selling and customer-service costs depend on the numberof customers that Metro can support, not the actual number of customers the company serves. Metro has 75customers in 20X2 and 80 customers in 20X3. At the start of each year, management uses its discretion todetermine the number of design staff for the year. The design staff and costs have no direct relationship withthe quantity of OM produced or the number of customers to whom OM is sold.

1) Measures for the balance scorecard of Metro Corporation are as follows: Financial Perspective…

QUESTION 1. Identify applicable key performance objectives and/or measures for the balanced scorecard of Metro Corporation. Explain briefly how your cited objectives/ measures can affect the financial performance of the company. 2. Calculate the productivity component that explains the change in operating income from 20X2 and 20X3.

QUESTION 1. Identify applicable key performance objectives and/or measures for the balanced scorecard of Metro Corporation. Explain briefly how your cited objectives/ measures can affect the financial performance of the company. 2. Calculate the productivity component that explains the change in operating income from 20X2 and 20X3.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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