INDUSTRY B FIRM 3 Period 3 Results **************** Financial Summary **************** VoiceBox Channel 1 Channel 2 Total -------- Units Sold 26415 13031 39446 Wholesale Price $130.00 $135.00 Unit Cost $87.00 $87.00 Gross Sales $3,433,950 $1,759,185 $5,193,135 Cost of Goods Sold $2,298,105 $1,133,697 $3,431,802 Transfer Charges $0 Gross Margin $1,761,333 Expenses Advertising $250,000 Sales Force-Salary $190,706 $143,030 $333,736 -Firing Costs $0 -Commission $240,377 $123,143 $363,519 Customer Service $87,407 Sales Promotion $0 $0 $0 R&D for Product Modifications $13,000 Marketing Research $30,000 Total Expenses $1,077,662 Net Contribution (Loss) $683,671 VersaBox Channel 1 Channel 2 Total -------- Units Sold 6260 3936 10196 Wholesale Price $50.00 $52.00 Unit Cost $18.00 $18.00 Gross Sales $313,000 $204,672 $517,672 Cost of Goods Sold $112,680 $70,848 $183,528 Transfer Charges $0 Gross Margin $334,144 Expenses Advertising $103,000 Sales Force-Salary $49,294 $36,970 $86,264 -Firing Costs $0 -Commission $21,910 $14,327 $36,237 Customer Service $22,593 Sales Promotion $0 $0 $0 R&D for Product Modifications $64,000 Marketing Research $30,000 Total Expenses $342,094 Net Contribution (Loss) (- $7,950) Total Contribution (Loss) $675,721 Budget for Next Period: $1,059,000 ( 28% of Industry Total) *************** Production Summary **************** Requested Actual Units Inventory Unit Brand Production Production Sold Transferred Cost _____ __________ __________ ____ ___________ ____ VoiceBox 45,000 39,446 39,446 0 $87.00 VersaBox 10,000 10,196 10,196 0 $18.00 *************** 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 3: Average Customer Preferences ********** Product: VRD Special Error Ease of Approximate Segment Commands Protection Learning Price Range ------- -------- ---------- -------- ----------- Students 9.8 2.9 3.8 $131.00 - $161.00 Home Users 9.7 5.1 7.2 $140.00 - $177.50 Assistants 10.7 6.1 7.2 $204.00 - $264.00 Creators 15.8 2.6 3.8 $229.00 - $289.00 Managers 16.3 5.9 4.4 $244.00 - $319.00 Parents 6.0 3.0 9.3 $151.43 - $194.29 Product: DVC Number of Similarity Ability to Approximate Segment Tasks of Commands Customize Price Range ------- -------- ----------- ------- ----------- Students 3.0 5.3 2.2 $121.00 - $151.00 Home Users 6.7 3.9 4.6 $187.14 - $221.43 Assistants 4.9 6.4 9.1 $197.00 - $245.00 Creators 8.3 2.7 7.9 $200.00 - $260.00 Managers 5.2 7.6 6.3 $180.00 - $210.00 Parents 1.6 10.0 1.0 $151.22 - $177.89