INDUSTRY C FIRM 2 Period 3 Results **************** Financial Summary **************** UltraVox Channel 1 Channel 2 Total -------- Units Sold 18662 11233 29895 Wholesale Price $158.00 $170.00 Unit Cost $90.00 $90.00 Gross Sales $2,948,596 $1,909,610 $4,858,206 Cost of Goods Sold $1,679,580 $1,010,970 $2,690,550 Transfer Charges $28,418 Gross Margin $2,139,239 Expenses Advertising $220,000 Sales Force-Salary $205,021 $131,799 $336,820 -Firing Costs $0 -Commission $235,888 $152,769 $388,656 Customer Service $73,954 Sales Promotion $40,000 $20,000 $60,000 R&D for Product Modifications $8,000 Marketing Research $0 Total Expenses $1,087,431 Net Contribution (Loss) $1,051,808 MicroVox Channel 1 Channel 2 Total -------- Units Sold 6170 4763 10933 Wholesale Price $70.00 $75.00 Unit Cost $25.00 $25.00 Gross Sales $431,900 $357,225 $789,125 Cost of Goods Sold $154,250 $119,075 $273,325 Transfer Charges $0 Gross Margin $515,800 Expenses Advertising $100,000 Sales Force-Salary $74,979 $48,201 $123,180 -Firing Costs $0 -Commission $34,552 $28,578 $63,130 Customer Service $27,046 Sales Promotion $10,000 $10,000 $20,000 R&D for Product Modifications $152,000 Marketing Research $0 Total Expenses $485,356 Net Contribution (Loss) $30,444 Total Contribution (Loss) $1,082,252 Budget for Next Period: $1,128,000 ( 28% of Industry Total) *************** Production Summary **************** Requested Actual Units Inventory Unit Brand Production Production Sold Transferred Cost _____ __________ __________ ____ ___________ ____ UltraVox 40,000 32,000 29,895 2,105 $90.00 MicroVox 10,000 10,933 10,933 0 $25.00 *************** Industry Sales Report *************** VRD Unit Market Share $ Sales Market Share Brand Sales (Units) (Retail) ($ Sales) ----- ----- ------- -------- --------- Vsmart 28,639 0.259 $6,026,938 0.223 UltraVox 29,895 0.271 $8,814,170 0.326 Inotech 24,686 0.223 $6,827,480 0.252 AccuVox 27,281 0.247 $5,376,637 0.199 Total 110,501 $27,045,225 Unit $ Channel Sales Sales ------- ----- ----- 1 50,431 $15,234,397 2 60,070 $11,810,828 DVC Unit Market Share $ Sales Market Share Brand Sales (Units) (Retail) ($ Sales) ----- ----- ------- -------- --------- IQsmart 1,616 0.056 $210,744 0.052 MicroVox 10,933 0.379 $1,400,553 0.347 Ubervox 4,622 0.160 $523,889 0.130 ActiVox 11,652 0.404 $1,898,926 0.471 Total 28,823 $4,034,112 Unit $ Channel Sales Sales ------- ----- ----- 1 14,671 $2,353,107 2 14,152 $1,681,005 ********** Product Features & Prices Report *********** Average Average VRD Special Error Ease of Retail Price Retail Price Brand Commands Protection Learning Channel 1 Channel 2 ----- -------- ---------- -------- --------- --------- Vsmart 13 3 5 $279.69 $170.41 UltraVox 16 6 4 $315.50 $260.51 Inotech 13 6 6 $310.00 $243.07 AccuVox 12 4 8 $289.39 $152.24 Average Average DVC Number Similarity Ability to Retail Price Retail Price Brand of Tasks of Commands Customize Channel 1 Channel 2 ----- -------- ----------- --------- --------- --------- IQsmart 2 1 1 $147.79 $113.33 MicroVox 3 1 5 $139.50 $113.34 Ubervox 2 2 2 $126.00 $101.53 ActiVox 6 3 2 $199.85 $130.36 *************** Marketing Activity Report *************** (Data Reported Is from Period 3) VRD Vsmart UltraVox Inotech AccuVox ------ -------- ------- ------- Advertising Dollars $250,000 $220,000 $290,000 $150,000 Advertising Type Direct Corporate Direct Direct Sales Promotion Channel 1 $17,000 $40,000 $0 $30,000 Channel 2 $8,000 $20,000 $0 $30,000 Number of Sales Reps Channel 1 12 14 13 12 Channel 2 13 9 10 12 Commission 5% 8% 7% 8% Customer Service $79,000 $101,000 $103,000 $75,000 DVC IQsmart MicroVox Ubervox ActiVox ------- -------- ------- ------- Advertising Dollars $30,000 $100,000 $75,000 $140,000 Advertising Type Pioneering Direct Direct Direct Sales Promotion Channel 1 $1,000 $10,000 $0 $10,000 Channel 2 $1,000 $10,000 $0 $10,000