Dominic & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Dominic wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Dominic T-shirt. Dominic presents the following data for its first 2 years of operations, 2019 and 2020.

Required

Administrative costs depend on the number of customers Dominic has created capacity to support, not on the actual number of customers served. Dominic had 4,300 customers in 2019 and 4,200 customers in 2020.
1. Is Dominic’s strategy one of product differentiation or cost leadership? Explain briefly.
2. Describe briefly the key measures Dominic should include in its balanced scorecard and the reasons for doing so.

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1. Number of T-shirts purchased 2. Number of T-shirts discarded 3. Number of T-shirts sold (row 1 - row 2) 4. Average selling price 5. Average cost per T-shirt 6. Administrative capacity (number of customers) 7. Administrative costs 8. Administrative cost per customer (row 7, row 6) 2019 $ $ 225,500 20,500 205,000 32.00 17.00 4,700 $1,739,000 $ 370 2020 ssss $ 33.00 15.00 4,450 $1,691,000 S 380 257,000 24,000 233,000 $