Question

Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Baldwin to pull the product Bill 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 Bill 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).

ame	Primary Segment	Units Sold	Unit Inven tory	Revision Date	Age Dec.31	MTBF	Pfmn Coord	Size Coord	Price	Material Cost	Labor Cost	Contr. Marg.	2nd Shift & Over- time	Auto mation Next Round	Capacity Next Round	Plant Utiliz.
Art	Elite	1,302	23	8/18/2021	1.3	26000	14.8	8.1	$42.00	$13.51	$8.43	48%	83%	7.0	714	181%
Ant	Thrift	610	638	7/23/2021	1.6	20000	7.0	13.0	$26.00	$7.25	$4.16	49%	0%	9.0	1,130	88%
Ace	Core	946	448	8/13/2021	1.4	22000	10.0	10.0	$32.00	$9.93	$5.54	44%	0%	8.0	1,200	50%
Axe	Nano	1,209	371	8/18/2021	1.3	24000	11.9	5.2	$40.00	$12.95	$8.57	44%	98%	7.0	728	196%
Bam	Thrift	2,201	150	6/10/2021	2.6	17000	7.8	12.2	$15.00	$6.69	$1.45	45%	33%	10.0	1,650	132%
Bell	Thrift	2,226	167	6/1/2021	2.6	17000	8.0	12.0	$15.00	$6.82	$1.39	44%	17%	10.0	1,831	116%
Bill	Core	2,328	285	12/14/2021	1.6	18000	10.5	8.8	$23.00	$9.03	$4.69	39%	77%	8.0	1,300	175%
Bolt	Core	2,257	295	12/14/2021	1.6	20000	11.2	9.3	$25.00	$9.64	$4.50	42%	50%	8.0	1,500	149%
Cat	Thrift	1,497	158	12/19/2020	3.2	14000	7.5	12.5	$15.00	$5.93	$1.24	49%	0%	10.0	1,250	91%
Cell	Thrift	1,727	233	12/7/2018	4.1	16000	8.4	11.6	$17.00	$7.14	$1.37	43%	0%	9.9	1,646	96%
City	Nano	1,539	276	12/21/2021	1.0	18000	12.6	4.4	$28.00	$11.83	$5.80	36%	54%	7.0	1,042	152%
Cozy	Elite	1,112	260	12/21/2021	1.0	20000	16.0	7.2	$34.00	$12.62	$5.29	46%	16%	7.0	994	115%
Cute	Core	1,752	185	11/18/2021	1.0	16000	10.4	9.4	$19.00	$8.63	$5.05	28%	69%	7.6	1,097	167%
Crimp	Core	1,988	39	12/14/2021	1.0	16000	10.1	9.8	$20.00	$8.38	$4.62	36%	100%	8.0	1,024	198%
Daft	Nano	2,132	244	9/13/2021	1.3	23000	13.3	4.2	$34.00	$13.04	$6.63	42%	100%	7.0	1,200	198%
Deal	Elite	1,811	70	8/21/2021	1.6	25000	16.4	6.7	$34.00	$13.82	$6.63	40%	100%	7.0	850	198%
Dim	Nano	1,583	420	8/13/2021	1.4	23000	13.7	3.9	$37.00	$13.28	$5.89	45%	27%	7.0	1,300	126%
Dome	Elite	1,754	405	8/21/2021	1.3	25000	16.2	6.4	$37.00	$13.83	$5.86	44%	25%	7.0	1,400	124%

Answer 1

Existing capacity can be used to produce "double" the amount of product(due to second shift potential)

the answer is $5,203