Do you have any suggestions on how to improve the performance of Assembly Division? What program should be planned and proof your recommendation with calculations. (25 marks) Based on your balance scorecard knowledge, provide a suggestion what are the best performance measures for both divisions? Draw a strategy map to show the linkage of the performance measures (25 marks) Component and Performance Assembly Division

Compute the profit for your entire firm based on your answers to questions 1, 2, 3. Comment on what happened. Was CEO’s decision to apply a new transfer pricing policy fair to both divisions? Please explain (25 marks).

Have any ideas on improving performance in Assembly Division? You should suggest a program and prove it with calculations. (25 marks)

Give a recommendation based on the information you have about balance scorecards for which performance measures would be best for each division. To show how the performance measures are linked (25 marks), draw a strategy map.

 

Component and Performance Assembly Division

 

Answer

Answer 4

The firm’s wide profit is determined as follows;

 

The diversity of the business divisions has resulted in an increase in the net distribution profits. A high level of performance is implied by the increase in organization’s total profit. Transfer in pricing raises the contribution to the margin at a significant rate, which is important for the company’s profit. In this example, the contribution margin for the component division is $65, while that of the assembly division (Kumar, 2021). Through a series shifts, the stipulated figure has an impact on the overall profit of the company. A higher percentage of assembly division results in a greater profit margin. This is due to the increased allocation of resources. Within the respective divisions, there is an increase of profit margin.

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