Question
The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.20 % of
The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.20 % of the market share in 2013 and expects that percentage will increase by 0.21 % per year. KMS currently has the capacity to produce a maximum of 1 comma 100 comma 000 units. What production capacity will KMS require each year? When will an expansion become necessary (that is, when will production volume exceed 1 comma 100 comma 000 units)? Year 2013 2014 2015 2016 2017 2018 Production Volume (000 units) Market Size 10 comma 000 10 comma 467 11 comma 024 11 comma 513 12 comma 116 12 comma 789 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. KMS's market share for 2013 is nothing units.(Round to the nearest integer.)
The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.20% of the market share in 2013 and expects that percentage will increase by 0.21% per year. KMS currently has the capacity to produce a maximum of 1,100,000 units. What production capacity will KMS require each year? When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? Year 2013 2014 2015 2016 2017 2018 Production Volume (000 units) Market Size 10,000 10,467 11,024 11,513 12,116 12,789 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. KMS's market share for 2013 is," units. (Round to the nearest integer.) KMS's market share for 2014 is units. (Round to the nearest integer.) KMS's market share for 2015 is units. (Round to the nearest integer.) KMS's market share for 2016 is units. (Round to the nearest integer.) KMS's market share for 2017 is units. (Round to the nearest integer.) KMS's market share for 2018 is units. (Round to the nearest integer.) When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? (Select the best choice below.) O A. In 2014, production will exceed 1,100,000 units and production capacity will have to be increased. B. In 2013, production will exceed 1,100,000 units and production capacity will have to be increased. O C. In 2015, production will exceed 1,100,000 units and production capacity will have to be increased. OD. In 2016, production will exceed 1,100,000 units and production capacity will have to be increasedStep by Step Solution
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