At the end of 20x1, Mejorar Company implemented a low-cost strategy to improve its competitive position. Its objective was to become the low-cost producer in its industry. A Balanced Scorecard was developed to guide the company toward this objective. To lower costs, Mejorar undertook a number of improvement activities such as JIT production, total quality management, and activity-based management. Now, after two years of operation, the president of Mejorar wants some assessment of the achievements. To help provide this assessment, the following information on one product has been gathered: 20x1 20x3 Theoretical annual capacity* 249,600 249,600 Actual production** 208,000 234,000 Market size (in units sold) 1,300,000 1,300,000 Production hours available (40 workers) 104,000 104,000 Very satisfied customers 62,400 117,000 Actual cost per unit $340 $272 Days of inventory 14 7 Number of defective units 12,480 7,020 Total worker suggestions 80 320 Hours of training 260 1,040 Selling price per unit $190 $190 Number of new customers 5,200 25,740 *Amount that could be produced given the available production hours; everything produced is sold. **Amount that was produced given the available production hours. Required: j. Total revenue. 20x1 $fill in the blank 20x3 $fill in the blank k. Number of new customers. 20x1 fill in the blank 20x3 fill in the blank

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.2SA

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At the end of 20x1, Mejorar Company implemented a low-cost strategy to improve its competitive position. Its objective was to become the low-cost producer in its industry. A Balanced Scorecard was developed to guide the company toward this objective. To lower costs, Mejorar undertook a number of improvement activities such as JIT production, total quality management, and activity-based management. Now, after two years of operation, the president of Mejorar wants some assessment of the achievements. To help provide this assessment, the following information on one product has been gathered:

	20x1	20x3
Theoretical annual capacity^*	249,600	249,600
Actual production^**	208,000	234,000
Market size (in units sold)	1,300,000	1,300,000
Production hours available (40 workers)	104,000	104,000
Very satisfied customers	62,400	117,000
Actual cost per unit	$340	$272
Days of inventory	14	7
Number of defective units	12,480	7,020
Total worker suggestions	80	320
Hours of training	260	1,040
Selling price per unit	$190	$190
Number of new customers	5,200	25,740

^*Amount that could be produced given the available production hours; everything produced is sold.
^**Amount that was produced given the available production hours.

Required:

j. Total revenue.

20x1	$fill in the blank
20x3	$fill in the blank

k. Number of new customers.

20x1	fill in the blank
20x3	fill in the blank

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