INDUSTRY C FIRM 4 Period 3 Results **************** Financial Summary **************** AccuVox Channel 1 Channel 2 Total ------- Units Sold 8920 18361 27281 Wholesale Price $145.00 $100.00 Unit Cost $76.00 $76.00 Gross Sales $1,293,400 $1,836,100 $3,129,500 Cost of Goods Sold $677,920 $1,395,436 $2,073,356 Transfer Charges $0 Gross Margin $1,056,144 Expenses Advertising $150,000 Sales Force-Salary $168,172 $168,172 $336,344 -Firing Costs $0 -Commission $103,472 $146,888 $250,360 Customer Service $52,554 Sales Promotion $30,000 $30,000 $60,000 R&D for Product Modifications $32,000 Marketing Research $15,000 Total Expenses $896,258 Net Contribution (Loss) $159,886 ActiVox Channel 1 Channel 2 Total ------- Units Sold 5468 6184 11652 Wholesale Price $100.00 $85.00 Unit Cost $37.00 $37.00 Gross Sales $546,800 $525,640 $1,072,440 Cost of Goods Sold $202,316 $228,808 $431,124 Transfer Charges $112,931 Gross Margin $528,385 Expenses Advertising $140,000 Sales Force-Salary $71,828 $71,828 $143,656 -Firing Costs $0 -Commission $43,744 $42,051 $85,795 Customer Service $22,446 Sales Promotion $10,000 $10,000 $20,000 R&D for Product Modifications $77,000 Marketing Research $45,000 Total Expenses $533,897 Net Contribution (Loss) (- $5,513) Total Contribution (Loss) $154,373 Budget for Next Period: $924,000 ( 23% of Industry Total) *************** Production Summary **************** Requested Actual Units Inventory Unit Brand Production Production Sold Transferred Cost _____ __________ __________ ____ ___________ ____ AccuVox 30,000 27,281 27,281 0 $76.00 ActiVox 40,000 32,000 11,652 20,348 $37.00 *************** 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: DVC Number of Similarity Ability to Approximate Segment Tasks of Commands Customize Price Range ------- -------- ----------- ------- ----------- Students 2.6 7.0 3.3 $121.00 - $151.00 Home Users 8.6 4.9 4.4 $187.14 - $221.43 Assistants 5.1 6.3 8.5 $197.00 - $245.00 Creators 10.1 3.4 7.1 $200.00 - $260.00 Managers 7.2 7.3 5.1 $180.00 - $210.00 Parents 1.0 9.0 1.0 $151.22 - $177.89