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Assume that Ideko's market share will increase by 40% percent per year (e.g., Ideko's market share will be 10.60% 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) 5.05% 10,000 Market Share 0.40% 10.2% What production capacity will Ideko require each year for the next five years? 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.) Sales Data Growth/Year 2005 Market Size (000 units) 5.05% Market Share 0.40% % Production Volume (000 units)

Financial Management, Finance

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