, what production capacity will Kappa require each year? When will and expansion be necessary?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 87PSB
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Based on table 7.3, what production capacity will Kappa require each year? When will and expansion be necessary? 

Year
2021
2022
2023
2024
2025
2026
Sales Data
Growth/Year
1
Market Size
(000 units)
5.0%
10,000
10,500
11,025
11,576
12,155
12,763
2 Market Share
1.0%
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
3 Average Sales Price
(S/unit)
2.0%
75.00
76.50
78.03
79.59
81.18
82.81
Transcribed Image Text:Year 2021 2022 2023 2024 2025 2026 Sales Data Growth/Year 1 Market Size (000 units) 5.0% 10,000 10,500 11,025 11,576 12,155 12,763 2 Market Share 1.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 3 Average Sales Price (S/unit) 2.0% 75.00 76.50 78.03 79.59 81.18 82.81
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