Border Gin $($since Year $1)$ operates a private distillery and makes $6$ different types of gin. Below is data for Years $6$ and $7.$

Year $6$

Year $7$

Bottles manufactured

$262,500$

$300,000$

Bottles broken or lost

$1,875$

$1,000$

Bottles sold

$260,625$

$299,000$

Average selling price

$ $35\mathrm{.}00$

$ $36\mathrm{.}25$

Average cost

$ $8\mathrm{.}75$

$ $9\mathrm{.}69$

Maximum customer capacity

$6,250$

$6,250$

Cost to service customers

$ $1,500,000$

$ $1,531,250$

Cost per customer

$ $300$

$ $306$

Distillery staff

$6$

$6$

Distillery staff costs

$ $262,500$

$ $275,000$

Required

Calculate Border Gins operating income for Year $6$ and Year $7.$ You can round each line total to the nearest dollar. $(12$ marks$)$

Is their overall strategy one of value or cost leadership?

Describe the key elements that Border Gin should include in its balanced score card and explain your reasons. Discuss each element of the balanced scorecard in a separate paragraph.

Answer rating: 100% (QA)

Operating Income Calculation for Year 6 Revenue Bottles sold Average selling price 260625 3500 9143750 Cost of Goods Sold Bottles manufactured Bottles ... View the full answer