Prepare a case response using the CPA Way as we discussed last week for the attached case. Include an introduction, issue $1($state issue, do analysis $($qualitative and quantitative$),$ alternatives if applicable, recommendations$)$ then issue $2$ etc. At the end of the paper, summarize key recommendations. Use Word for the narrative and Excel for quantitative analysis.

You can use the questions at the end of the case to assist you in what to write in your submission $...$ do not just answer the questions. Question $2(24$ Marks$)$

ApexLogic is a small firm that develops and tailors ERP systems to medium sized companies in Ontario. The market for ApexLogic is very competitive. To compete, ApexLogic must deliver quality service at a low cost. ApexLogic bills clients in terms of unit of work performed, which depends on the size and complexity of the ERP system. The company has $20$ staff in total. The president is interested in improving the profitability and performance of the firm. He has big plans to $"$go public" in the future. ApexLogic presents the following data for the first ten months of the year $2021$:

ERP implementation labour$-$hour costs are variable costs. ERP implementation support costs for each $5-$month period depend on the ERP implementation support capacity $($defined in terms of units of work$)$ that ApexLogic chooses to maintain in each period. It does not vary with the actual units of work done. At the start of each $5-$month period, management uses its discretion to determine the number of ERP development employees. The ERP development staff and costs have no direct relationship with the number of units of work performed.

a$)$ Based on the description of the business model only $($do not consider the numbers provided$)$ is ApexLogic's strategy one of product differentiation or cost leadership? Explain $(3$ marks$)$

b$)$ Mention one objective and one measure for each component that you would include in a balanced scorecard for the company. $(8$ marks$)$

c$)$ Comment, by calculating operating income for each period and using examples, if ApexLogic has been successful in its current strategy $(4$ marks$)$