Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Digby to pull the product Deal entirely off the market this year. Assume Digby 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 Digby or other companies. Without Digby's product Deal 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).
Total industry capacity after Digby's pull-out = Total industry capacity before Digby's pull-out - Digby's capacity = 9,788-1150=8638
Though study of the attached financial analysis show that the ...
Compute industry production capacity