Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 25 Sep 2017 My Price 8.00

Westlake Corporation

Strategy, balanced scorecard, service company. Westlake Corporation is a small information systems consulting firm that specializes in helping companies implement standard sales-management software. The market for Westlake’s services is very competitive. To compete successfully, Westlake must deliver quality service at a low cost. Westlake presents the following data for 2010 and 2011.

   

2010

2011
 

Number of jobs billed

60

70
 

Selling price per job

$50,000

$48,000
 

Software-implementation labor-hours

30,000

32,000
 

Cost per software-implementation labor-hour

$60

$63
 

Software-implementation support capacity (number of jobs it can do)

90

90
 

Total cost of software-implementation support

$360,000

$369,000
 

Software-implementation support-capacity cost per job (row 6 ÷ row 5)

$4,000

$4,100

Software-implementation labor-hour costs are variable costs. Software-implementation support costs for each year depend on the software-implementation support capacity Westlake chooses to maintain each year (that is the number of jobs it can do each year). It does not vary with the actual number of jobs done that year.

1. Is Westlake Corporation’s strategy one of product differentiation or cost leadership? Explain briefly.

2. Describe key measures you would include in Westlake’s balanced scorecard and your reasons for doing so.

Answers

Maurice Tutor
(5)
Status NEW Posted 25 Sep 2017 03:09 PM My Price 8.00

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