According to information found on the production analysis page of the Inquirer, Digby sold 1127 units of Dino in the current year. Assuming that Dino maintains a constant market share, all the units of Dino are sold in the Nano market segment and the growth rate remains constant, how many years will it be before Dino will not be able to meet future demand unless the company adds production capacity? Exclude any existing inventory.
4 year(s)
3 year(s)
2 year(s)
1 year(s)

In the current year Chester delivered 1127 Cat units. It is further mentioned that in the Nano market segment all cat units are sold, and growth rate remains constant. Therefore, if your production capacity has been exhausted in the current year, the company needs to add production capacity in one year to meet the increasing demand.

Therefore the final answer is organization should add production capacity within one year else business could not fulfill future demand.

anthougo anthougo · Answer 2 · 2021-12-02T22:13:37+01:00

With a constant segment growth rate of 14%, the number of years before Dino cannot meet future demand unless it adds production capacity is d. 1 year.

Based on the current sales of 1,127 units, without any inventory, and based on the growth rate of 14%, next year's sales will equal 1,285 units (1,127 x 1.14). Without adding capacity, Dino cannot supply 158 units next year.

Thus, in one year without adding capacity, sales will not meet demand.

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