INDUSTRY B FIRM 1 Period 3 Results **************** Financial Summary **************** TalkTron Channel 1 Channel 2 Total -------- Units Sold 3717 26746 30463 Wholesale Price $98.00 $98.00 Unit Cost $57.00 $57.00 Gross Sales $364,266 $2,621,108 $2,985,374 Cost of Goods Sold $211,869 $1,524,522 $1,736,391 Transfer Charges $0 Gross Margin $1,248,983 Expenses Advertising $275,000 Sales Force-Salary $80,000 $300,000 $380,000 -Firing Costs $0 -Commission $21,856 $157,266 $179,122 Customer Service $95,000 Sales Promotion $5,000 $45,000 $50,000 R&D for Product Modifications $0 Marketing Research $0 Total Expenses $979,122 Net Contribution (Loss) $269,861 Budget for Next Period: $964,000 ( 25% of Industry Total) *************** Production Summary **************** Requested Actual Units Inventory Unit Brand Production Production Sold Transferred Cost _____ __________ __________ ____ ___________ ____ TalkTron 30,000 30,463 30,463 0 $57.00 *************** Industry Sales Report *************** VRD Unit Market Share $ Sales Market Share Brand Sales (Units) (Retail) ($ Sales) ----- ----- ------- -------- --------- TalkTron 30,463 0.282 $4,719,213 0.215 B2PHONE 6,395 0.059 $1,134,014 0.052 VoiceBox 39,446 0.366 $9,574,308 0.437 AVCD 31,584 0.293 $6,495,712 0.296 Total 107,888 $21,923,248 Unit $ Channel Sales Sales ------- ----- ----- 1 51,070 $12,364,821 2 56,818 $9,558,427 DVC Unit Market Share $ Sales Market Share Brand Sales (Units) (Retail) ($ Sales) ----- ----- ------- -------- --------- B2COM 14,869 0.489 $2,643,726 0.617 VersaBox 10,196 0.335 $940,880 0.219 FastCom 5,338 0.176 $702,385 0.164 Total 30,403 $4,286,991 Unit $ Channel Sales Sales ------- ----- ----- 1 15,799 $2,424,295 2 14,604 $1,862,696 ********** Product Features & Prices Report *********** Average Average VRD Special Error Ease of Retail Price Retail Price Brand Commands Protection Learning Channel 1 Channel 2 ----- -------- ---------- -------- --------- --------- TalkTron 10 3 4 $195.76 $149.24 B2PHONE 11 4 6 $210.00 $159.04 VoiceBox 13 7 7 $260.00 $207.69 AVCD 13 6 7 $229.97 $170.65 Average Average DVC Number Similarity Ability to Retail Price Retail Price Brand of Tasks of Commands Customize Channel 1 Channel 2 ----- -------- ----------- --------- --------- --------- B2COM 4 5 5 $210.00 $153.84 VersaBox 2 2 2 $100.00 $80.00 FastCom 2 2 2 $145.87 $110.28 *************** Marketing Activity Report *************** (Data Reported Is from Period 3) VRD TalkTron B2PHONE VoiceBox AVCD -------- ------- -------- ---- Advertising Dollars $275,000 $47,000 $250,000 $128,000 Advertising Type Indirect Reminder Pioneering Direct Sales Promotion Channel 1 $5,000 $0 $0 $2,000 Channel 2 $45,000 $20,000 $0 $2,000 Number of Sales Reps Channel 1 4 12 12 13 Channel 2 15 9 9 9 Commission 6% 7% 7% 7% Customer Service $95,000 $100,000 $110,000 $110,000 DVC B2COM VersaBox FastCom ----- -------- ------- Advertising Dollars $160,000 $103,000 $50,000 Advertising Type Pioneering Pioneering Direct Sales Promotion Channel 1 $0 $0 $2,000 Channel 2 $0 $0 $2,000