Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Baldwin to pull the product Bat 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 Bat how much can the industry currently produce in the Core segment

11550

Explanation:

The computation of industry current produced in the core segment is shown below:

As there are five companies in the core segment i.e Abby, Brat, Bat, Cent , and Clack

First, we have to compute the total production capacity which is

CompaniesPrimary SegmentCapacity Next Round

Abby                 Core            2150

Brat                         Core            1250

Bat                         Core             1500

Cent                 Core             1098

Clack                 Core             1027

Total Capacity                             7025

Now

segment without Brat.

So,

Production Capacity

= 7025 - 1250

= 5775

Moreover, the company work in two shifts

So, the production capacity is

= 5775 ×  2

= 11550

The answer would be

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