Assume that KXS' market share will increase by 0.25% per year rather than the 1% used in the chapter (see Table 17.5) and that its prices remain as in the chapter. What production capacity will KXS require each year? When will an expansion become necessary (when will production volume exceed 1100)?

TABLE 17.5 KXS Forecasted Production Capacity Requirements

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1 Year 20112012 2013 2014 2015 2016 2 Production Volume (000s units) 3 Market Size 4 Market Share 5 Production Volume (1 x 2) 6 Additional Market Information 7 Average Sales Price 10,000 10,500 11,025 11,576 12,155 12,763 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 1000 1155 1323 1505 702 1914 $74.89 $76.51 $78.04 $79.60 $ 81.19 S 82.82