Assume that Ideko's market share will increase by 0.45 percent per year as shown in the table, Sales Data Growth/Year 4.80% 2005 Market Size (000 units)10,200, Market Share 0.45% and 10.3% in 2005 , (e.g., Ideko's market share will be 10.05 % 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%)? What production capacity will Ideko require each year for the next five years? 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.) for years 2005 to 2010.

When will an expansion become necessary (i.e., when will production volume exceed the current level by

50 %50%)?

(Select the best choice below.)

A.Based on these estimates, it will take until 2008 before current capacity will be exceeded and an expansion becomes necessary.

B.Based on these estimates, it will take until2010 before current capacity will be exceeded and an expansion becomes necessary.

C.Based on these estimates, it will take until 2009 before current capacity will be exceeded and an expansion becomes necessary.

D.Based on these estimates, it will take until2007before current capacity will be exceeded and an expansion becomes necessary.

Sales data	Growth year	2005	2006	2007
Market size(000 units)	4.80%	10,200
Market share	0.45%	10.3%
Production volume(000) units