Question

Your Competitive Intelligence team is predicting that the Digby Company will invest in adding capacity to their Dug product this year. Assume Digby's product Dug invests in increasing its capacity by 10% this year. Because of this new information, your company anticipates all other products in the Core segment will increase their capacity by the same amount. How much can the industry produce in the Core segment the next year? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000).

Product	Segment	Capacity Next Round
Dug	Core	1200
Dune	Core	1450
Beetle	Core	1040
Bat	Core	1050
New	Core	100
Adam	Core	1200

If you take these numbers and add the 10% you get 6,644 for next year's capacity. However, the choices on the homework are not one of those, they are 8,585; 7385; 9564; 4840; 4025; 13288; and 8364 == This makes no sense.

Answer 1

As per your information, I have rechecked your answer by increasing 10% to capacity.

Total of 6,644 is correct.

However we are required to calculate "How much can the industry produce in the Core segment the next year? ".

=6644+6644 (given in question that all other products in the Core segment will increase their capacity by the same amount after 10% increase)

=13288

Option E(13288) is the answer