The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.10% of the market share in 2013 and expects that percentage will increase by 0.23% per year. KMS currently has the capacity to produce a maximum of 1,100,000 units. What production capacity will KMS require each year? When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? Year 2013 2014 2015 2016 2017 2018 Production Volume (000 units) Market Size 10,000 10,460 11,053 KMS's market share for 2013 is units. (Round to the nearest integer.) 11,542 12,123 12,719
The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.10% of the market share in 2013 and expects that percentage will increase by 0.23% per year. KMS currently has the capacity to produce a maximum of 1,100,000 units. What production capacity will KMS require each year? When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? Year 2013 2014 2015 2016 2017 2018 Production Volume (000 units) Market Size 10,000 10,460 11,053 KMS's market share for 2013 is units. (Round to the nearest integer.) 11,542 12,123 12,719
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ee 354.
Transcribed Image Text:The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to
capture 10.10% of the market share in 2013 and expects that percentage will increase by 0.23% per year. KMS
currently has the capacity to produce a maximum of 1,100,000 units. What production capacity will KMS require each
year? When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)?
2013
2014
2016
Year
Production Volume (000 units)
Market Size
10,000
10,460
2015
11,053
KMS's market share for 2013 is units. (Round to the nearest integer.)
11,542
2017
12,123
2018
12,719
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