INDUSTRY A FIRM 1 Period 3 Results **************** Financial Summary **************** VoicePro Channel 1 Channel 2 Total -------- Units Sold 24046 6391 30437 Wholesale Price $143.00 $161.00 Unit Cost $93.00 $93.00 Gross Sales $3,438,578 $1,028,951 $4,467,529 Cost of Goods Sold $2,236,278 $594,363 $2,830,641 Transfer Charges $0 Gross Margin $1,636,888 Expenses Advertising $90,000 Sales Force-Salary $314,620 $82,795 $397,415 -Firing Costs $0 -Commission $240,700 $72,027 $312,727 Customer Service $74,515 Sales Promotion $0 $0 $0 R&D for Product Modifications $19,000 Marketing Research $0 Total Expenses $893,657 Net Contribution (Loss) $743,231 Finley Channel 1 Channel 2 Total ------ Units Sold 4427 1898 6325 Wholesale Price $100.00 $100.00 Unit Cost $30.00 $30.00 Gross Sales $442,700 $189,800 $632,500 Cost of Goods Sold $132,810 $56,940 $189,750 Transfer Charges $25,538 Gross Margin $417,213 Expenses Advertising $98,000 Sales Force-Salary $65,380 $17,205 $82,585 -Firing Costs $0 -Commission $30,989 $13,286 $44,275 Customer Service $15,485 Sales Promotion $0 $0 $0 R&D for Product Modifications $179,000 Marketing Research $30,000 Total Expenses $449,345 Net Contribution (Loss) (- $32,133) Total Contribution (Loss) $711,098 Budget for Next Period: $1,066,000 ( 28% of Industry Total) *************** Production Summary **************** Requested Actual Units Inventory Unit Brand Production Production Sold Transferred Cost _____ __________ __________ ____ ___________ ____ VoicePro 35,000 30,437 30,437 0 $93.00 Finley 15,000 12,000 6,325 5,675 $30.00 *************** Industry Sales Report *************** VRD Unit Market Share $ Sales Market Share Brand Sales (Units) (Retail) ($ Sales) ----- ----- ------- -------- --------- VoicePro 30,437 0.326 $8,460,143 0.421 CogNeato 13,714 0.147 $3,367,061 0.167 AccuTalk 24,604 0.264 $4,030,655 0.200 Voxtra 24,605 0.264 $4,247,746 0.211 Total 93,360 $20,105,605 Unit $ Channel Sales Sales ------- ----- ----- 1 45,698 $11,973,567 2 47,662 $8,132,038 DVC Unit Market Share $ Sales Market Share Brand Sales (Units) (Retail) ($ Sales) ----- ----- ------- -------- --------- Finley 6,325 0.243 $1,177,388 0.233 CogNeato 2,438 0.094 $463,220 0.092 AccuCom 6,698 0.258 $1,045,275 0.207 Digivox 10,525 0.405 $2,368,757 0.469 Total 25,986 $5,054,641 Unit $ Channel Sales Sales ------- ----- ----- 1 11,216 $2,366,876 2 14,770 $2,687,765 ********** Product Features & Prices Report *********** Average Average VRD Special Error Ease of Retail Price Retail Price Brand Commands Protection Learning Channel 1 Channel 2 ----- -------- ---------- -------- --------- --------- VoicePro 16 7 4 $286.00 $247.69 CogNeato 11 6 7 $245.52 $189.23 AccuTalk 10 4 8 $240.00 $156.79 Voxtra 11 4 5 $210.00 $160.96 Average Average DVC Number Similarity Ability to Retail Price Retail Price Brand of Tasks of Commands Customize Channel 1 Channel 2 ----- -------- ----------- --------- --------- --------- Finley 3 4 3 $200.00 $153.84 CogNeato 4 4 3 $190.00 $146.15 AccuCom 3 4 3 $180.00 $152.37 Digivox 5 4 7 $248.00 $213.84 *************** Marketing Activity Report *************** (Data Reported Is from Period 3) VRD VoicePro CogNeato AccuTalk Voxtra -------- -------- -------- ------ Advertising Dollars $90,000 $107,000 $50,000 $110,000 Advertising Type Direct Direct Direct Direct Sales Promotion Channel 1 $0 $40,000 $0 $0 Channel 2 $0 $0 $5,000 $12,000 Number of Sales Reps Channel 1 19 19 4 12 Channel 2 5 0 20 13 Commission 7% 7% 5% 8% Customer Service $90,000 $106,000 $60,000 $94,000 DVC Finley CogNeato AccuCom Digivox ------ -------- ------- ------- Advertising Dollars $98,000 $110,000 $100,000 $140,000 Advertising Type Pioneering Pioneering Direct Pioneering Sales Promotion Channel 1 $0 $0 $0 $0 Channel 2 $0 $0 $23,000 $0 ********** Report 3: Average Customer Preferences ********** Product: DVC Number of Similarity Ability to Approximate Segment Tasks of Commands Customize Price Range ------- -------- ----------- ------- ----------- Students 1.0 5.1 3.7 $121.00 - $151.00 Home Users 7.1 4.3 5.5 $187.14 - $221.43 Assistants 3.9 6.3 8.7 $197.00 - $245.00 Creators 8.8 2.2 7.1 $200.00 - $260.00 Managers 4.5 8.7 5.1 $180.00 - $210.00 Parents 1.0 10.0 1.0 $151.22 - $177.89