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Problem 1: The table below gives a detailed forecast of the size of the market by production volume. Assume that KXS expects to capture 10.00% of the market share in 2018 and expects that percentage will increase by 0.26% per year. KXS currently has the capacity to produce a maximum of 1100 thousand units. What production capacity will KXS require each year When will an expansion become necessary? (that is, when will production volume exceed 1100 thousand units)?
Year 2018 2019 2020 2021 2022 2023
Production Volume (000 units)
Market Size 10,000 10,453 11,048 11,591 12,151 12,728
KXS's market share for 2018 is nothing thousand units.
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