inda Lopez

Fri, $5$:$01$ pm

oard Member, Marketing

udgeting for product promotion

Sanjay Singh Fri, $3$:$24$ pm

$3$oard Member, Operations

redicting segment capacity

$-$awrence Shift

$3$oard Member, Fri, $3$:$00$ pm

trategy

Movement in the industry

part $2)$

Lawrence Shift

Board Member, Fri, $2$:$35$ pm

SS Banjay Singh $,$ Board Member, Operations

Fri, $3$:$24$ pm

Thembelihle,

I just got off the phone with Michelle and she told me that the product liability lawsuit against Digby was finally

settled this week. This means that Digby will have to pull Dune entirely off the market this year. This move has

implications for the overall production capacity of the High End segment. I$\text{'}$d like to know what these

consequences will be$.$

More specifically, how much can the industry currently produce in the High End segment without Digby's

product Dune?

When running your calculation, you can assume that Digby will scrap all its capacity and inventory this round

so it can completely write off those assets and escrow the proceeds to a lawsuit settlement fund. You only

need to consider products primarily in the High End seggent last year and you can ignore current inventories.

Michelle also informed me that the lawsuit will not affect any other products of Digby or other companies.

Best,

Sanjay

Sanjay Singh

Board Member, Operations $|$Andrews

Corporation