INDUSTRY B FIRM 4 Period 3 Results **************** Financial Summary **************** AVCD Channel 1 Channel 2 Total ---- Units Sold 18643 12941 31584 Wholesale Price $115.00 $111.00 Unit Cost $84.00 $84.00 Gross Sales $2,143,945 $1,436,451 $3,580,396 Cost of Goods Sold $1,566,012 $1,087,044 $2,653,056 Transfer Charges $0 Gross Margin $927,340 Expenses Advertising $128,000 Sales Force-Salary $222,410 $153,976 $376,387 -Firing Costs $0 -Commission $150,076 $100,552 $250,628 Customer Service $94,097 Sales Promotion $2,000 $2,000 $4,000 R&D for Product Modifications $0 Marketing Research $0 Total Expenses $853,111 Net Contribution (Loss) $74,229 FastCom Channel 1 Channel 2 Total ------- Units Sold 3195 2143 5338 Wholesale Price $73.00 $72.00 Unit Cost $18.00 $18.00 Gross Sales $233,235 $154,296 $387,531 Cost of Goods Sold $57,510 $38,574 $96,084 Transfer Charges $2,867 Gross Margin $288,580 Expenses Advertising $50,000 Sales Force-Salary $37,590 $26,024 $63,613 -Firing Costs $0 -Commission $16,326 $10,801 $27,127 Customer Service $15,903 Sales Promotion $2,000 $2,000 $4,000 R&D for Product Modifications $64,000 Marketing Research $0 Total Expenses $224,643 Net Contribution (Loss) $63,936 Total Contribution (Loss) $138,165 Budget for Next Period: $917,000 ( 24% of Industry Total) *************** Production Summary **************** Requested Actual Units Inventory Unit Brand Production Production Sold Transferred Cost _____ __________ __________ ____ ___________ ____ AVCD 34,000 31,584 31,584 0 $84.00 FastCom 8,000 6,400 5,338 1,062 $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