Please answer the question properly.

1: Based on table 7.3, what production capacity will Kappa require each year? When will and expansion be necessary?

Reminder: Once the growth in volume exceeds 50%, however, Kappa will need to undertake a major expansion to increase its manufacturing capacity.

Table 7.3 Spreadsheet Kappa Sales and Operating cost Assumptions 2021 2022 2023 2024 2025 2026 10,000 10.0% 75.00 10,500 11.0% 76.50 11,025 12.0% 78.03 11,576 13.0% 79.59 12,155 14.0% 81.18 12.763 15.0% 82.81 Year Sales Data Growth/Year 1 Market Size (000 units) 5.0% 2 Market Share 1.0% 3 Average Sales Price ($/unit) 2.0% Cost of Goods Data 4 Raw Materials ($/unit) 1.0% 5 Direct Labor Costs ($/unit) 4.0% Operating Expense and Tax Data 6 Sales and Marketing % sales) 7 Administrative 1% sales) 8 Tax Rate 16.00 18.00 16.16 18.72 16.32 19.47 16.48 20.25 16.65 21.06 16.82 21.90 15.0% 18.0% 35.0% 16.5% 15.0% 35.0% 18.0% 15.0% 35.0% 19.5% 14.0% 35.0% 20.0% 13.0% 35.0% 20.0% 13.0% 35.0% Table 7.3 Spreadsheet Kappa Sales and Operating cost Assumptions 2021 2022 2023 2024 2025 2026 10,000 10.0% 75.00 10,500 11.0% 76.50 11,025 12.0% 78.03 11,576 13.0% 79.59 12,155 14.0% 81.18 12.763 15.0% 82.81 Year Sales Data Growth/Year 1 Market Size (000 units) 5.0% 2 Market Share 1.0% 3 Average Sales Price ($/unit) 2.0% Cost of Goods Data 4 Raw Materials ($/unit) 1.0% 5 Direct Labor Costs ($/unit) 4.0% Operating Expense and Tax Data 6 Sales and Marketing % sales) 7 Administrative 1% sales) 8 Tax Rate 16.00 18.00 16.16 18.72 16.32 19.47 16.48 20.25 16.65 21.06 16.82 21.90 15.0% 18.0% 35.0% 16.5% 15.0% 35.0% 18.0% 15.0% 35.0% 19.5% 14.0% 35.0% 20.0% 13.0% 35.0% 20.0% 13.0% 35.0%