Question

Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Baldwin to pull the product Buzz entirely off the market this year. Assume Baldwin 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 Baldwin or other companies. Without Baldwin's product Buzz 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).

Select: 1

7,778 6,799 9,271 5,360 8,292 7,368 10,720 Production Information Name Primary Segment Units Sold Unit Inven tory Revision Date Age Dec.31 MTBF Pfmn Coord Size Coord Price Material Cost Labor Cost Contr. Marg. 2nd Shift & Over- time Auto mation Next Round Capacity Next Round Plant Utiliz. Acre Core 599 7,361 4/13/2022 5.2 19000 10.1 9.9 $28.50 $9.26 $5.41 -29% 62% 8.0 1,330 160% Adam Nano 783 5,107 11/2/2022 3.7 21000 12.4 5.0 $36.50 $12.65 $6.75 6% 29% 7.0 1,400 127% Aft Elite 548 1,031 8/15/2022 3.5 23000 15.0 7.6 $40.50 $13.25 $9.26 30% 2% 5.0 928 101% Agape Thrift 618 488 9/21/2021 1.7 17000 8.0 12.2 $22.50 $6.99 $10.68 4% 0% 4.0 914 81% Bape 0 0 5/17/2021 0.6 17 8.3 11.7 $22.50 $0.00 $0.00 0% 0% 8.0 0 0% Coogie 0 0 5/17/2021 0.6 19 11.3 8.7 $28.50 $0.00 $0.00 0% 0% 7.0 0 0% Dolce 0 0 4/30/2021 0.7 21 13.2 3.9 $36.50 $0.00 $0.00 0% 0% 5.0 0 0% Enyce 0 0 4/30/2021 0.7 23 16.1 6.8 $40.50 $0.00 $0.00 0% 0% 0.0 0 0% Bead Thrift 2,232 180 4/30/2021 2.7 17000 8.5 11.5 $15.00 $6.69 $1.42 44% 22% 10.0 1,846 121% Bid Thrift 2,245 171 4/30/2021 2.7 17000 8.7 11.3 $15.00 $6.82 $2.51 36% 15% 9.2 1,949 114% Buzz Core 2,417 276 12/1/2021 1.6 18000 11.2 8.1 $23.00 $9.03 $4.87 38% 51% 7.8 1,493 149% Buddy Core 2,345 298 12/1/2021 1.6 20000 11.9 8.6 $25.00 $9.64 $4.57 42% 23% 7.8 1,742 122% Cedar Thrift 1,492 200 12/19/2020 3.2 14000 8.2 11.8 $15.00 $5.93 $1.63 46% 0% 9.7 1,399 67% Cid Thrift 1,744 237 12/7/2018 4.1 16000 9.1 10.9 $17.00 $7.14 $3.75 32% 0% 8.0 1,899 83% Coat Nano 1,691 416 11/5/2021 1.1 18000 13.3 3.7 $28.00 $11.83 $7.41 30% 63% 6.0 1,199 161% Cure Elite 1,322 338 11/5/2021 1.1 20000 16.7 6.5 $34.00 $12.62 $6.69 42% 17% 6.0 1,199 116% Camp Core 1,810 173 10/14/2021 1.0 16000 11.1 8.7 $19.00 $8.63 $5.78 24% 48% 7.0 1,249 147% Cent Core 2,048 9 12/14/2021 1.0 16000 10.8 9.1 $20.00 $8.38 $4.65 36% 100% 8.0 1,039 198% Dell Nano 2,302 371 9/13/2021 1.3 23000 14.0 3.5 $34.00 $13.04 $6.63 42% 100% 7.0 1,350 198% Dixie Elite 2,089 59 8/21/2021 1.6 25000 17.1 6.0 $34.00 $13.82 $6.63 40% 100% 7.0 1,000 198% Dot Nano 1,699 546 8/13/2021 1.4 23000 14.4 3.2 $37.00 $13.28 $6.02 45% 36% 7.0 1,400 134% Dune Elite 2,018 489 8/21/2021 1.3 25000 16.9 5.7 $37.00 $13.83 $5.89 44% 27% 7.0 1,650 126%

Answer 1

SO lets see without buzz we have 4 core products namely:

1. Acre
2. Buddy
3. Camp
4. Cent

There 2nd round capacity is as follows

1330+1742+1249+1039=5,360

existing capacity can be used to produce double the amount of product due to second shift potential

so 5,360*2=10,720

note:you look for capacity next round and not units sold

so your answer is option 7 :10,720