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EpiscoWhat EpiscoWhat
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6 years ago
Based upon Ideko's Sales and Operating Cost Assumptions, what production capacity will Ideko require in 2009?
A) 1505 units
B) 1115 units
C) 1323 units
D) 1702 units
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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#1
6 years ago
D
Explanation:  D) Production volume each year can be estimated by multiplying the total market size and Ideko's market share from the table above:
   Year   2005   2006   2007   2008   2009   2010
Production Volume
(000 units)                     
1  Market Size      10,000   10,500   11,025   11,576   12,155   12,763
2  Market Share      10.0%   11.0%   12.0%   13.0%   14.0%   15.0%
3  Production Volume
(1 × 2)      1000   1155   1323   1505   1702   1914
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