Your Competitive Intelligence team is predicting that the Baldwin Company will invest in adding capacity to their Bam product this year. Assume Baldwin's product Bam 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.