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using the information at question 14-19 and answer questions 14-19,14-20, 14-21 please

14 Strategy, the Balanced Scorecard, and Profitability Analysis 14-19 Strategic analysis of operating Income. Refer to the information in Exercise 14-18. LO income 7.500 F Required 1. Calculate the change in operating income of Grey Corporation in 2021 and 2022. between 2021 and 2022. 3. Comment on your answer in requirement 2. What do these components indicate? 2 Calculate the growth, price-recovery, and productivity components of changes in operating income 14-20 Analysis of growth, price-recovery, and productivity components (continuation of Exer- cise 14-19). Suppose that between 2021 and 2022 the market for Grey's special-purpose machines grew at 3%. All increases in market share i.e., sales increases greater than 3%) are the result of Grey's strategic come sze 00F actions Required Calculate how much of the change in operating income between 2021 and 2022 is due to industry market- size factors, cost leadership, and product differentiation. How successful has Grey been in implementing its strategy? Explain en gaan 14:21 Identifying and managing unused capacity. Refer to the Grey Corporation information in Exer. bo d 5 Required 1. Where possible, calculate the amount and cost of unused capacity for (a) manufacturing, (b) selling and customer service, and (c) design at the beginning of 2022 based on 2022 production. If you could not calculate the amount and cost of unused capacity, indicate why not. 2. Suppose Grey can add or reduce its manufacturing capacity in increments of 30 units. What is the maximum amount of costs that Grey could save by downsizing manufacturing capacity? 3. Grey, in fact, does not eliminate any of its unused manufacturing capacity. Why might Grey not downsize? bio na be 14-22 Balanced Scorecard. Following is a random-order listing of perspectives, strategic objectives, and performance measures for the BSC. Perspectives Internal business process Customer Learning and growth Financial Strategic Objectives Acquire new customers Increase shareholder value Retain customers Improve manufacturing ouni Performance Measures Percentage of defective product units Return on assets Number of patents Employee turnover rate Net income Customer profitability Percentage of processes with real-time feedback Return ment 1 of Exercise 14-167 Was La Flamme's gain in operating income in 2022 consistent with the strategy you identified in require 2 Explain the productivity component. In general, does it represent savings in only variable costs, only fixed costs, or both variable and fixed costs? 14-18 Strategy, balanced Scorecard. Grey Corporation makes a special-purpose D4H machine used in been generally regarded as a superior machine. Grey presents the following data for the years 2021 and the textile industry. Grey has designed the D4H machine for 2021 to be distinct from its competitors. It has 2022. 1. Units of D4H produced and sold 2 Selling price 2021 200 $40,000 300,000 $8.00 250 $2,000,000 $8,000 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity (units of D4H) 6. Total conversion costs 7. Conversion cost per unit of capacity 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity cost per customer 11. Design staff 12 Total design costs 13. Design cost per employee 2022 210 $42,000 310,000 $8.50 250 $2,025,000 $8,100 95 customers $940,500 $9,900 12 $1,212,000 $101,000 100 customers $1,000,000 $10,000 12 $1,200,000 $100,000 Grey produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2022. Manufacturing conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units of D4H produced. Selling and customer- service costs depend on the number of customers that Grey can support, not the actual number of cus- tomers Grey serves. Grey has 75 customers in 2021 and 80 customers in 2022. At the start of each year, management uses its discretion to determine the number of design staff for the year. The design staff and costs have no direct relationship with the quantity of D4H produced or the number of customers to whom D4H is sold. Required 1. Is Grey's strategy one of product differentiation or cost leadership? Explain briefly. 2 Describe briefly key elements that you would include in Grey's BSC and the reasons for doing so. channes sin ylion 14 Strategy, the Balanced Scorecard, and Profitability Analysis 14-19 Strategic analysis of operating Income. Refer to the information in Exercise 14-18. LO income 7.500 F Required 1. Calculate the change in operating income of Grey Corporation in 2021 and 2022. between 2021 and 2022. 3. Comment on your answer in requirement 2. What do these components indicate? 2 Calculate the growth, price-recovery, and productivity components of changes in operating income 14-20 Analysis of growth, price-recovery, and productivity components (continuation of Exer- cise 14-19). Suppose that between 2021 and 2022 the market for Grey's special-purpose machines grew at 3%. All increases in market share i.e., sales increases greater than 3%) are the result of Grey's strategic come sze 00F actions Required Calculate how much of the change in operating income between 2021 and 2022 is due to industry market- size factors, cost leadership, and product differentiation. How successful has Grey been in implementing its strategy? Explain en gaan 14:21 Identifying and managing unused capacity. Refer to the Grey Corporation information in Exer. bo d 5 Required 1. Where possible, calculate the amount and cost of unused capacity for (a) manufacturing, (b) selling and customer service, and (c) design at the beginning of 2022 based on 2022 production. If you could not calculate the amount and cost of unused capacity, indicate why not. 2. Suppose Grey can add or reduce its manufacturing capacity in increments of 30 units. What is the maximum amount of costs that Grey could save by downsizing manufacturing capacity? 3. Grey, in fact, does not eliminate any of its unused manufacturing capacity. Why might Grey not downsize? bio na be 14-22 Balanced Scorecard. Following is a random-order listing of perspectives, strategic objectives, and performance measures for the BSC. Perspectives Internal business process Customer Learning and growth Financial Strategic Objectives Acquire new customers Increase shareholder value Retain customers Improve manufacturing ouni Performance Measures Percentage of defective product units Return on assets Number of patents Employee turnover rate Net income Customer profitability Percentage of processes with real-time feedback Return ment 1 of Exercise 14-167 Was La Flamme's gain in operating income in 2022 consistent with the strategy you identified in require 2 Explain the productivity component. In general, does it represent savings in only variable costs, only fixed costs, or both variable and fixed costs? 14-18 Strategy, balanced Scorecard. Grey Corporation makes a special-purpose D4H machine used in been generally regarded as a superior machine. Grey presents the following data for the years 2021 and the textile industry. Grey has designed the D4H machine for 2021 to be distinct from its competitors. It has 2022. 1. Units of D4H produced and sold 2 Selling price 2021 200 $40,000 300,000 $8.00 250 $2,000,000 $8,000 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity (units of D4H) 6. Total conversion costs 7. Conversion cost per unit of capacity 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity cost per customer 11. Design staff 12 Total design costs 13. Design cost per employee 2022 210 $42,000 310,000 $8.50 250 $2,025,000 $8,100 95 customers $940,500 $9,900 12 $1,212,000 $101,000 100 customers $1,000,000 $10,000 12 $1,200,000 $100,000 Grey produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2022. Manufacturing conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units of D4H produced. Selling and customer- service costs depend on the number of customers that Grey can support, not the actual number of cus- tomers Grey serves. Grey has 75 customers in 2021 and 80 customers in 2022. At the start of each year, management uses its discretion to determine the number of design staff for the year. The design staff and costs have no direct relationship with the quantity of D4H produced or the number of customers to whom D4H is sold. Required 1. Is Grey's strategy one of product differentiation or cost leadership? Explain briefly. 2 Describe briefly key elements that you would include in Grey's BSC and the reasons for doing so. channes sin ylion

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