Question:
Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Digby to pull the product Dart entirely off the market this year. Assume Digby scraps all capacity and inventory this round, completely writing off those assets and escrowing the proceeds to a settlement fund, and assume these lawsuits will have no effect on any other products of Digby or other companies. Without Digby's product Dart how much can the industry currently produce in the Core segment? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000).
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Age Dec.31 Material Cost Labor Contr. 2nd Shift & Automation Marg. Over-time 30% 37% 33% Capacity Next Round Next Round Utilize. Plant Units Name Price Primary Revision Date Pfmn Coord Coord Unit Sold Inventory Size Segment Cost Cost $7.19 $7.19 $8.91 MTBF $23.98 $34.98 $35.95 $8.33 1,223 764 749 5/19/2018 7/5/2018 4/27/2018 1,413 1,465 1,419 1,442 945 1,909 1,223 786 1,665 1,053 1,797 1,254 1,301 1,426 1,929 2,029 1,716 1,911 16000 Art Core Nano 1.6 24000 1.5 26000 1.6 17000 1.8 2.2 8.8 11.1 13.5 6.8 10.8 6.4 9.7 13.7 0% 5.0 5.0 5.0 4.0 7.0 77% $13.31 99% 198% Ate Attic $10.38 Elite 98% 301 231 $15.99 $6.71 $6.82 $5.15 1,151 1,250 Axe Thrift Thrift Thrift 8/11/2018 12/20/2018 12/6/2016 12/17/2018 12/17/2018 12/25/2018 2/10/2018 11/5/2018 26% 48% 33% 35% 44% 18% 117% 40% 12.5 11.6 $17.00 $19.00 $30.00 $36.00 $1.81 $3.90 $7.07 Boat 14000 7.5 8.4 0% 20% 10.0 16000 3.1 119% 155% $8.14 $12.74 1,500 Best Core 151 134 178 10.0 7.0 11.9 15.0 Bam Nano 1.0 18000 20000 1.0 5.4 7.9 56% 6% 900 850 $13.59 7.0 8.0 8.0 7.0 Elite $6.20 $5.76 $4.48 $7.91 $6.84 $7.29 $7.53 $2.96 $2.85 $4.44 $4.37 105% Bell 9.8 16000 68 1,040 1,040 $21.00 $22.00 $9.31 Bit Core Core 0.9 0.9 10.1 30% 37% 38% 36% 41% 38% 68% 100% 167% $9.03 $13.66 $14.56 176% 198% Bolt 16000 23000 9.5 12.5 15.3 13.0 10.5 5.5 100% 1,100 1.2 $34.00 $34.00 $37.00 $37.00 $16.00 Cone Nano 90 129 236 352 1.9 7.0 7.0 7.0 7.0 7.0 8/24/2018 Creak Elite 25000 23000 7.5 5.0 7.2 67% 42% 750 1,100 1,200 1,450 1,550 1,150 1,350 165% 1.3 1.3 3.7 3.6 2.1 2.1 7/3/2018 7/25/2018 6/10/2019 6/10/2019 12/16/2017 12/18/2017 $14.04 $14.57 141% Cat Nano 25000 17000 17000 18000 158% 149% 131% 149% 141% Cell 60% Elite 15.1 6.8 7.0 9.9 10.6 13.2 13.0 9.5 37% 35% 38% 150 207 177 196 $6.80 $6.96 $9.72 $10.36 Don Thrift Thrift 50% 32% 10.0 10.0 $16.00 $24.00 Drum 8.0 Dart Core Core 50% 42% 10.0 $24.00 Deal 20000 36% 8.0