INDUSTRY A FIRM 2 Period 3 Results **************** Financial Summary **************** CogNeato Channel 1 Channel 2 Total -------- Units Sold 13714 0 13714 Wholesale Price $123.00 $123.00 Unit Cost $76.00 $76.00 Gross Sales $1,686,822 $0 $1,686,822 Cost of Goods Sold $1,042,264 $0 $1,042,264 Transfer Charges $71,660 Gross Margin $572,898 Expenses Advertising $107,000 Sales Force-Salary $322,642 $0 $322,642 -Firing Costs $0 -Commission $118,078 $0 $118,078 Customer Service $90,000 Sales Promotion $40,000 $0 $40,000 R&D for Product Modifications $0 Marketing Research $0 Total Expenses $677,720 Net Contribution (Loss) (- $104,823) CogNeato Channel 1 Channel 2 Total -------- Units Sold 2438 0 2438 Wholesale Price $95.00 $95.00 Unit Cost $34.00 $34.00 Gross Sales $231,610 $0 $231,610 Cost of Goods Sold $82,892 $0 $82,892 Transfer Charges $36,526 Gross Margin $112,192 Expenses Advertising $110,000 Sales Force-Salary $57,358 $0 $57,358 -Firing Costs $0 -Commission $16,213 $0 $16,213 Customer Service $16,000 Sales Promotion $0 $0 $0 R&D for Product Modifications $235,000 Marketing Research $0 Total Expenses $434,570 Net Contribution (Loss) (- $322,378) Total Contribution (Loss) (- $427,201) Budget for Next Period: $800,000 ( 21% of Industry Total) *************** Production Summary **************** Requested Actual Units Inventory Unit Brand Production Production Sold Transferred Cost _____ __________ __________ ____ ___________ ____ CogNeato 25,000 20,000 13,714 6,286 $76.00 CogNeato 12,000 9,600 2,438 7,162 $34.00 *************** 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