Solution-Projected annual production volume

Projected annual production volume

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Reference no: EM131402005

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%)?

Ideko Sales Assumptions
Sales Data	Growth/Year	2005
Market Size (000 units)	4.95%	10,300
Market Share	0.40%	9.5%

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

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market share

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Reference no: EM131402005

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Projected annual production volume

Reference no: EM131402005

Reference no: EM131402005

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