Ideko Sales and Operating Cost Assumptions

		Year	2005	2006	2007	2008	2009	2010
Sales Data	Growth/Year
1 Market Size (000 units)	5.0%		10,000	10,500	11,025	11,576	12,155	12,763
2 Market Share	1.0%		10.0%	11.0%	12.0%	13.0%	14.0%	15.0%
3 Average Sales Price ($/unit)	2.0%		75.00	76.50	78.03	79.59	81.18	82.81
Cost of Goods Data
4 Raw Materials ($/unit)	1.0%		16.00	16.16	16.32	16.48	16.65	16.82
5 Direct Labor Costs ($/unit)	4.0%		18.00	18.72	19.47	20.25	21.06	21.90
Operating Expense and Tax Data
6 Sales and Marketing (% sales)			15.0%	16.5%	18.0%	19.5%	20.0%	20.0%
7 Administrative (% sales)			18.0%	15.0%	15.0%	14.0%	13.0%	13.0%
8 Tax Rate			35.0%	35.0%	35.0%	35.0%	35.0%	35.0%

Based upon Ideko's Sales and Operating Cost Assumptions, what production capacity will Ideko require in 2009?

Question 21 options:

A) 1,701,700 units

B) 1,323,000 units

C) 1,914,000 units

D) 1,115,000 units

E) 1,505,000 units