INDUSTRY B FIRM 2 Period 3 Results **************** Financial Summary **************** B2PHONE Channel 1 Channel 2 Total ------- Units Sold 2295 4100 6395 Wholesale Price $105.00 $105.00 Unit Cost $68.00 $68.00 Gross Sales $240,975 $430,500 $671,475 Cost of Goods Sold $156,060 $278,800 $434,860 Transfer Charges $57,171 Gross Margin $179,444 Expenses Advertising $47,000 Sales Force-Salary $72,178 $54,134 $126,312 -Firing Costs $0 -Commission $16,868 $30,135 $47,003 Customer Service $30,074 Sales Promotion $0 $20,000 $20,000 R&D for Product Modifications $0 Marketing Research $15,000 Total Expenses $285,390 Net Contribution (Loss) (- $105,946) B2COM Channel 1 Channel 2 Total ----- Units Sold 6344 8525 14869 Wholesale Price $105.00 $100.00 Unit Cost $41.00 $41.00 Gross Sales $666,120 $852,500 $1,518,620 Cost of Goods Sold $260,104 $349,525 $609,629 Transfer Charges $31,556 Gross Margin $877,435 Expenses Advertising $160,000 Sales Force-Salary $167,822 $125,866 $293,688 -Firing Costs $0 -Commission $46,628 $59,675 $106,303 Customer Service $69,926 Sales Promotion $0 $0 $0 R&D for Product Modifications $104,000 Marketing Research $15,000 Total Expenses $748,917 Net Contribution (Loss) $128,518 Total Contribution (Loss) $22,573 Budget for Next Period: $847,000 ( 22% of Industry Total) *************** Production Summary **************** Requested Actual Units Inventory Unit Brand Production Production Sold Transferred Cost _____ __________ __________ ____ ___________ ____ B2PHONE 15,000 12,000 6,395 5,605 $68.00 B2COM 25,000 20,000 14,869 5,131 $41.00 *************** 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 ********** Report 4: Marketing Effectiveness Report ********** # of Competitors # of Competitors with with lower equal or higher Index Index Index ------ ------ ------ Brand Awareness - B2PHONE 0.251 0 3 Brand Awareness - B2COM 0.701 2 0 Customer Service Consumer Group Rating 101% Industry Average Rating 99% Channel 1: Sales Rep Workload Index 88% Dealer Satisfaction 0.837 1 2 Channel Strength ("Push") 0.201 1 2 Channel 2: Sales Rep Workload Index 116% Dealer Satisfaction 0.978 2 1 Channel Strength ("Push") 0.245 0 3