Assume that Ideko's market share will increase by 0.40 percent per year(e.g., Ideko's market share will be 9.90% in 2006). What production capacity will Ideko require each year for the next five years? When will an expansion become necessary(i.e., when will production volume exceed the current level by 50%)?
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Ideko Sales Assumptions
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Sales Data
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Growth/Year
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2005
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Market Size (000 units)
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4.95%
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10,300
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Market Share
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0.40%
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9.5%
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What production capacity will Ideko require each year for the next fiveyears?
First compute the projected annual market share.?
Then, using these projections, calculate the projected annual production volume:
(Round the volumes to one decimal place and the percentage of market share to two decimal places.)
2005 2006 2007 2008 2009 2010 2011 2012
Market size
market share
Prouction