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The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.20% of the market share in 2019 and expects that percentage will increase by 0.27% per year. KMS currently has the capacity to produce a maximum of 1,100,000 units. What production capacity will KMS require each year? When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? Year Production Volume (000 units) Market Size KMS's market share for 2019 is KMS's market share for 2020 is KMS's market share for 2021 is 2019 KMS's market share for 2022 is 10,000 KMS's market share for 2023 is 2020 11,046 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. 10,412 units. (Round to the nearest integer.) units. (Round to the nearest integer.) units. (Round to the nearest integer.) units. (Round to the nearest integer.) units. (Round to the nearest integer.) KMS's market share for 2024 is units. (Round to the nearest integer.) When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? (Select the best choice below.) D 2021 OA. In 2022, production will exceed 1,100,000 units and production capacity will have to be increased. OB. In 2020, production will exceed 1,100,000 units and production capacity will have to be increased. OC. In 2019, production will exceed 1,100,000 units and production capacity will have to be increased. OD. In 2021, production will exceed 1,100,000 units and production capacity will have to be increased. 2022 2023 11,570 2024 12,117 12.749

The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.20% of the market share in 2019 and expects that percentage will increase by 0.27% per year. KMS currently has the capacity to produce a maximum of 1,100,000 units. What production capacity will KMS require each year? When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? Year Production Volume (000 units) Market Size KMS's market share for 2019 is KMS's market share for 2020 is KMS's market share for 2021 is 2019 KMS's market share for 2022 is 10,000 KMS's market share for 2023 is 2020 11,046 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. 10,412 units. (Round to the nearest integer.) units. (Round to the nearest integer.) units. (Round to the nearest integer.) units. (Round to the nearest integer.) units. (Round to the nearest integer.) KMS's market share for 2024 is units. (Round to the nearest integer.) When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? (Select the best choice below.) D 2021 OA. In 2022, production will exceed 1,100,000 units and production capacity will have to be increased. OB. In 2020, production will exceed 1,100,000 units and production capacity will have to be increased. OC. In 2019, production will exceed 1,100,000 units and production capacity will have to be increased. OD. In 2021, production will exceed 1,100,000 units and production capacity will have to be increased. 2022 2023 11,570 2024 12,117 12.749

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 20EA: Towson Industries is considering an investment of $256,950 that is expected to generate returns of...
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MEINE ON The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.20% of the market share in 2019 and expects that percentage will increase by 0.27% per year. KMS currently has the capacity to produce a maximum of 1,100,000 units. What production capacity will KMS require each year? When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? Year Production Volume (000 units) Market Size KMS's market share for 2019 is KMS's market share for 2021 is KMS's market share for 2022 is 2019 KMS's market share for 2023 is 10,412 11,570 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. KMS's market share for 2024 is 2020 10,000 units. (Round to the nearest integer.) KMS's market share for 2020 is units. (Round to the nearest integer.) units. (Round to the nearest integer.) units. (Round to the nearest integer.) units. (Round to the nearest integer.) units. (Round to the nearest integer.) When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? (Select the best choice below.) O OA. In 2022, production will exceed 1,100,000 units and production capacity will have to be increased. OB. In 2020, production will exceed 1,100,000 units and production capacity will have to be increased. C. In 2019, production will exceed 1,100,000 units and production capacity will have to be increased. OD. In 2021, production will exceed 1,100,000 units and production capacity will have to be increased. 2021 ... 11,046 2022 2023 2024 12,117 12,749
Transcribed Image Text:MEINE ON The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.20% of the market share in 2019 and expects that percentage will increase by 0.27% per year. KMS currently has the capacity to produce a maximum of 1,100,000 units. What production capacity will KMS require each year? When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? Year Production Volume (000 units) Market Size KMS's market share for 2019 is KMS's market share for 2021 is KMS's market share for 2022 is 2019 KMS's market share for 2023 is 10,412 11,570 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. KMS's market share for 2024 is 2020 10,000 units. (Round to the nearest integer.) KMS's market share for 2020 is units. (Round to the nearest integer.) units. (Round to the nearest integer.) units. (Round to the nearest integer.) units. (Round to the nearest integer.) units. (Round to the nearest integer.) When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? (Select the best choice below.) O OA. In 2022, production will exceed 1,100,000 units and production capacity will have to be increased. OB. In 2020, production will exceed 1,100,000 units and production capacity will have to be increased. C. In 2019, production will exceed 1,100,000 units and production capacity will have to be increased. OD. In 2021, production will exceed 1,100,000 units and production capacity will have to be increased. 2021 ... 11,046 2022 2023 2024 12,117 12,749
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