Question

Your Competitive Intelligence team is predicting that the Chester Company will invest in adding capacity to their Cell product this year. Assume Chester's product Cell invests in increasing its capacity by 10% this year. Because of this new information, your company anticipates all other products in the Core segment will increase their capacity by the same amount. How much can the industry produce in the Core segment the next year? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000). Select: 1Save Answer 13,728 5,040 8,359 7,381 4,219 9,559 8,581

Answer 1

Question Completion:

Figures in thousands (000):

Product Segment Capacity Next Round

Dug Core 1200

Dune Core 1450

Beetle Core 1040

Bat Core 1050

New Core 100

Adam Core 1200

Answer:

Chester Company

Competitive Intelligence Report:

Based on the increased 10% capacity, the industry can produce 6,644 units.

Step-by-step explanation:

a) Data and Calculations:

Product Segment Capacity Next Round Increased Capacity (1.1)

Dug Core 1,200 1,320

Dune Core 1,450 1,595

Beetle Core 1,040 1,144

Bat Core 1,050 1,155

New Core 100 110

Adam Core 1,200 1,320

Total 6,040 6,644

b) Each of the core segment products can be increased by the increased capacity factor of 1.10 (1 + i), where "i" is the rate of capacity increase. Alternatively, the total capacity in the current period can be increased by the increased capacity factor. Either way, produces the same result of an increased capacity of 6,644 units that the industry can produce. The result also shows that the options provided in the question are not correct. They must have been based on other assumptions.