Illustrative Problem.

Mindoro Company produces a specialized tool, the SJ device, which is used in the automotive
sector. Mindoro designed the SJ device for 2023 to stand out from its competitors. It is highly
regarded as an amazing instrument.

2023 2024
Units of SJ devices manufactured and sold 100 110
Selling price 33, 000 35,000
Direct materials 2,000,000 2,500,000
Selling and customer-service capacity 100 customers 95 customers
Design staff 20 20
Design cost for employee 200,000 202,000

Mindoro makes no faulty devices, but it hopes to eliminate direct materials usage per SJ gadget by
2023. Conversion costs vary by year and are determined by production capacity, which is measured
in terms of SJ units that can be produced rather than actual SJ units made. Selling and customer-
service costs are determined by the consumers Mindoro can support, rather than the number of
customers SJ serves. SJ has 78 clients in 2023 and 83 in 2024. At the outset of each year,
management makes its own decisions on the quantity of design staff. The design team and costs
have no direct link to the amount of SJ produced or the number of clients to whom SJ is sold.

What is the strategy of Mindoro Company?

Describe briefly the important items you would include in Mindoro's balanced scorecard and why.
(Financial, Customer, Internal Business Process, and Learning and Growth).