Projected annual production volume

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Reference no: EM131402005

Assume that Ideko's market share will increase by 0.40 percent per year(e.g., Ideko's market share will be 9.90% in 2006). What production capacity will Ideko require each year for the next five years? When will an expansion become necessary(i.e., when will production volume exceed the current level by 50%)?

Ideko Sales Assumptions

Sales Data

Growth/Year

2005

Market Size (000 units)

4.95%

10,300

Market Share

0.40%

9.5%

What production capacity will Ideko require each year for the next fiveyears?

First compute the projected annual market share.?

Then, using these projections, calculate the projected annual production volume:

(Round the volumes to one decimal place and the percentage of market share to two decimal places.)

2005             2006              2007         2008       2009       2010        2011           2012

Market size

market share

Prouction

Reference no: EM131402005

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