Question

Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Baldwin to pull the product Bat entirely off the market this year. Assume Baldwin scraps all capacity and inventory this round, completely writing off those assets and escrowing the proceeds to a settlement fund, and assume these lawsuits will have no effect on any other products of Baldwin or other companies. Without Baldwin's product Bat how much can the industry currently produce in the Core segment

Answer 1

11550

Step-by-step explanation:

The computation of industry current produced in the core segment is shown below:

As there are five companies in the core segment i.e Abby, Brat, Bat, Cent , and Clack

First, we have to compute the total production capacity which is

Companies Primary Segment Capacity Next Round

Abby Core 2150

Brat Core 1250

Bat Core 1500

Cent Core 1098

Clack Core 1027

Total Capacity 7025

Now

segment without Brat.

So,

Production Capacity

= 7025 - 1250

= 5775

Moreover, the company work in two shifts

So, the production capacity is

= 5775 × 2

= 11550