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icholson Co sells mobile telephones. It supplies its customers with telephones and wireless telephone connections. Customers pay an annual fee plus a monthly charge based on calls made.
The company has recently employed a consultant to install a balanced scorecard system of performance measurement and to benchmark the results against those of Nicholson Co’s competitors. Unfortunately the consultant was called away before the work was finished. You have been asked to complete the work. The following data is available.
Nicholson Co
Operating data for the year ended 30 November 20X0
Sales revenue
$480 million
Sales attributable to new products
$8 million
Average capital employed
$192 million
Profit before interest and tax
$48 million
Average numbers of customers
1,960,000
Average number of telephones returned for repair each day
10,000
Number of bill queries
12,000
Number of customer complaints
21,600
Number of customers lost
117,600
Average number of telephones unrepaired at the end of each day
804
Calculate the following ratios and other statistics for Nicholson Co for the year ended 30 November 20X0.Q1. Average wait for a telephone repair——————days
Calculate the following statistics for Nicholson Co. (Give your answers to two decimal
places.)
Q2.Percentage of sales attributable to new products———————-%Dear Sir,
Good day to you.
Kindly explain above question.
Q1: If 10,000 telephones are returned for repair each day, and if 804 on average remain unrepaired, then the average wait is 804/10000 x 365 days (assuming 365 days in a year).
Q2: I am really surprised that you have a problem with this one.
The total sales are $480M. The sales attributable to new products are $8M.
So the percentage of sales attributable to new products is 8/480 x 100%
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