Question

Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Baldwin to pull the product Brat 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 Brat 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
A. 5,775
B. 7,667
C. 7,281
D. 8,531
E. 9,509
F. 8,259
G. 11,550

Answer 1

Answer:

Consider the following calculations.

Explanation:

Five companies in the core segment are Abby, Brat, Bat, Cent and Clack

Calculation Total Production Capacity :-

Consider the attached archive.

Total Production Capacity to determine the industry's Current Capacity to produce in the core

segment without Brat.

Production Capacity = 7025 - 1250 = 5775

The Companies can work in two shifts.

Total Production Capacity = 5775 * 2 = 11550

The Answer is "11550".