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The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.10% of the

The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.10% of the market share in 2013 and expects that percentage will increase by 0.28% 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 1,100,000units)?

Year

2013

2014

2015

2016

2017

2018

Production Volume (000 units)

Market Size

10,000

10,413

11,016

11,544

12,127

12,711

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)?

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