INDUSTRY C FIRM 3 Period 3 Results **************** Financial Summary **************** Inotech Channel 1 Channel 2 Total ------- Units Sold 12357 12329 24686 Wholesale Price $155.00 $158.00 Unit Cost $82.00 $82.00 Gross Sales $1,915,335 $1,947,982 $3,863,317 Cost of Goods Sold $1,013,274 $1,010,978 $2,024,252 Transfer Charges $1,402 Gross Margin $1,837,663 Expenses Advertising $290,000 Sales Force-Salary $218,997 $168,459 $387,456 -Firing Costs $0 -Commission $134,073 $136,359 $270,432 Customer Service $86,756 Sales Promotion $0 $0 $0 R&D for Product Modifications $32,000 Marketing Research $45,000 Total Expenses $1,111,645 Net Contribution (Loss) $726,018 Ubervox Channel 1 Channel 2 Total ------- Units Sold 2232 2390 4622 Wholesale Price $63.00 $66.00 Unit Cost $18.00 $18.00 Gross Sales $140,616 $157,740 $298,356 Cost of Goods Sold $40,176 $43,020 $83,196 Transfer Charges $19,921 Gross Margin $195,239 Expenses Advertising $75,000 Sales Force-Salary $41,003 $31,541 $72,544 -Firing Costs $0 -Commission $9,843 $11,042 $20,885 Customer Service $16,244 Sales Promotion $0 $0 $0 R&D for Product Modifications $64,000 Marketing Research $45,000 Total Expenses $293,672 Net Contribution (Loss) (- $98,433) Total Contribution (Loss) $627,585 Budget for Next Period: $1,050,000 ( 26% of Industry Total) *************** Production Summary **************** Requested Actual Units Inventory Unit Brand Production Production Sold Transferred Cost _____ __________ __________ ____ ___________ ____ Inotech 31,000 24,800 24,686 114 $82.00 Ubervox 15,000 12,000 4,622 7,378 $18.00 *************** 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 ********** Report 1: Market Share By Segment ********** VRD Brand Students Home Users Assistants Creators Managers Parents ----- -------- ---------- ---------- -------- -------- ------- Vsmart 0.407 0.250 0.204 0.298 0.132 0.256 UltraVox 0.134 0.149 0.231 0.304 0.581 0.186 Inotech 0.158 0.207 0.328 0.238 0.192 0.243 AccuVox 0.301 0.394 0.237 0.160 0.096 0.315 Total Sales 26,281 18,292 22,881 12,084 22,626 8,337 (in units) DVC Brand Students Home Users Assistants Creators Managers Parents ----- -------- ---------- ---------- -------- -------- ------- IQsmart 0.062 0.052 0.057 0.054 0.058 0.067 MicroVox 0.316 0.336 0.448 0.409 0.397 0.358 Ubervox 0.200 0.143 0.164 0.145 0.166 0.191 ActiVox 0.422 0.469 0.331 0.392 0.379 0.384 Total Sales 4,758 6,818 4,260 8,157 4,291 539 (in units) ********** Report 3: Average Customer Preferences ********** Product: VRD Special Error Ease of Approximate Segment Commands Protection Learning Price Range ------- -------- ---------- -------- ----------- Students 9.2 4.3 3.7 $131.00 - $161.00 Home Users 9.6 3.8 8.3 $140.00 - $177.50 Assistants 10.5 6.6 8.8 $204.00 - $264.00 Creators 15.0 1.6 3.9 $229.00 - $289.00 Managers 17.2 5.7 3.6 $244.00 - $319.00 Parents 6.0 2.4 9.4 $151.43 - $194.29 Product: DVC Number of Similarity Ability to Approximate Segment Tasks of Commands Customize Price Range ------- -------- ----------- ------- ----------- Students 2.8 5.4 3.8 $121.00 - $151.00 Home Users 8.0 4.1 6.0 $187.14 - $221.43 Assistants 4.1 6.4 9.6 $197.00 - $245.00 Creators 9.3 2.2 7.4 $200.00 - $260.00 Managers 7.1 8.1 5.7 $180.00 - $210.00 Parents 1.0 9.4 1.0 $151.22 - $177.89