Part 1 The following are performance measures. Classify each…

Part 1 The following are performance measures. Classify each performance measure into the most relevant balanced scorecard perspective.   Performance Measure Balanced Scorecard Perspective Percentage of defective products   Return on assets   Number of patents   Employee turnover rate   Customer profitability   Percentage of processes with real-time feedback   Percentage of on-time deliveries by suppliers   Profit per salesperson   Percentage of error-free invoices   Customer cost per unit     Part 2 Each of the following are independent scenarios.  Indicate the type of responsibility centre involved in each scenario.   Terrin Belson, plant manager for the laser printer factory of Compugear Inc. brushed his hair back and sighed. December had been a bad month: two machines had broken down, and some factory production workers (all on salary) were idle for part of the month. Materials prices increased, and insurance premiums on the factory increased. There was no way out of it; costs were going up. He hoped that the marketing vice-president would be able to push through some price increases, but that wasn’t his department.   Joanna Pauly was delighted to see that her ROI figures had increased for the third straight year. She was sure that her campaign to lower costs and use machinery more efficiently (enabling her factories to sell several older machines) was the reason why. Joanna planned to take full credit for the improvements at her semi-annual performance review.   Susan Whitehorse looked at the quarterly profit/loss statement with disgust. Revenue was down, and costs were up – what a combination! Then she had an idea: If she cut back on maintenance and equipment and let a product engineer go, expenses would decrease – perhaps enough to reverse the trend in income.   Shonna Lowry had just been hired to improve the fortunes of the southern divisions of ABC Inc. She met with top staff and hammered out a three-year plan to improve the situation. A centrepiece of the plan is the retirement of obsolete equipment and the purchase of state-of-the-art, computer-assisted machinery. The new machinery would take time for the workers to learn to use, but once that was done, waste would be virtually eliminated.     Part 3   Superior Corporation produces three products which all use the same material. Due to a labour strike, it has become challenging to obtain the material needed for manufacturing the products. The following data is available for the three products:   Product A B C Selling Price $250 $100 $450 Variable Costs           Direct Materials $100 $30 $300     Labour and other costs $85 $31 $102 Quantity of Materials (metres) 2.5 3.0 2.2   The demand for the products far exceeds the amount of material that can currently be purchased.   The current cost of the material is $10 per metre, and a maximum of 3,000 metres is available each month.   Superior Corporation must produce a minimum of 300 units of each product.   Required How many units of product A, B, and C should Superior Corporation produce? Provide full support for your calculation.   What is the maximum amount Superior Corporation would be willing to pay for another metre of material?

You are a senior manager at the Superior Corporation. You ne…

You are a senior manager at the Superior Corporation. You need to decide whether to invest in a new product line which will generate sales for 8 years. You would invest in the new product line if there is a 5 year payback period. It is expected that there will be annual cash sales of 65,000 units at $70 per unit, variable costs will be 65% of the selling price, and cash fixed costs are $800,000 per year. Working capital will increase by $120,000. The upfront investment is $8,000,000. At the end of the 8-years, the assets will be sold for their residual value of $1,250,000. The required rate of return is 12%.   Requirement Calculate the NPV. Conclude on whether the new product line should be undertaken based on the NPV. Calculate the IRR. Calculate the payback period. Conclude on whether the new product line should be undertaken based on the payback period. Calculate the simple rate of return. Conclude on whether the new product line should be undertaken based on the simple rate of return. You have been asked by the president to calculate the tax shield based on accelerated CCA on a different investment decision. Assume the following additional information which is not relevant to any other part on this question:   Working capital will increase by $225,000. The upfront investment is $5,500,000. At the end of the 10-years, the asset will be sold for the residual value of $1,560,000. The required rate of return is 9%, there is a corporate tax rate of 26% and a CCA rate of 28%. The CEO of Superior Corporation has approved a separate project (unrelated to the above details) with an NPV of -$2,456,890. Explain what type of project the CEO may have approved with rationale for the approval.

Best Winery, is a small winery that sells three types of win…

Best Winery, is a small winery that sells three types of wine- white, red, and ice wine. The following is the budget and actual data for the most recent year:   Budget Actual Sales of White wine in bottles 20,000 14,000 Sales of Red wine in bottles 12,000 10,000 Sales of Ice wine in bottles 8,000 6,000 Selling price per bottle of White wine $25 $24 Selling price per bottle of Red wine $22 $25 Selling price per bottle of Ice wine $28 $30 Variable expense per bottle of White wine $16 $19 Variable expense per bottle of Red wine $18 $15 Variable expense per bottle of Ice wine $21 $20 Market volume of White wine in bottles 120,000 180,000 Market volume of Red wine in bottles 150,000 220,000 Market volume of Ice wine in bottles 80,000 60,000   Required Calculate the sales-price variance for Red wine Calculate the sales-volume variance for Ice wine Calculate the sales-quantity variance for White wine Calculate the sales-mix variance for Red wine Calculate the market-volume variance for Ice wine Calculate the market-share variance for White wine