Question

According to information found on the production analysis page of the Inquirer, Baldwin sold 1127 units of Bolt in the current year. Assuming that Bolt maintains a constant market share, all the units of Bolt are sold in the Nano market segment, and the growth rate remains constant, how many years will it be before Bolt will not be able to meet future demand unless the company adds production capacity? Exclude any existing inventory.

a) 2 years
b) 3 years
c) 4 years
d) 5 years

Answer 1

The exact number of years cannot be determined without additional data on future demand.

Step-by-step explanation:

To determine how many years it will be before Bolt will not be able to meet future demand unless the company adds production capacity, we need to consider the growth rate and the current number of units sold. Since the growth rate remains constant and Bolt maintains a constant market share, we can calculate the number of years using the formula:

Years = Future demand / Current demand

Given that Baldwin sold 1127 units of Bolt in the current year, we don't have information about the future demand. Without additional data, we cannot determine the exact number of years. Therefore, none of the given options (a) 2 years, b) 3 years, c) 4 years, d) 5 years) can be confidently selected.