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Confidentiality Agreement

The undersigned reader acknowledges that the information provided by _________________________ in this marketing plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _________________________. It is acknowledged by reader that information to be furnished in this marketing plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to ________________________. Upon request, this document is to be immediately returned to _________________________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a marketing plan. It does not imply an offering of securities.

Table Of Contents
1.0 2.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 .2 .3 .3 .4 .4 .5 .5 .5 .6 .6 .6 .6 .7 .7 .7 .7 .7 .8 .8 .8 .8 .9 .9

Situation Analysis . . . . . . . . . . . 2.1 Market Summary . . . . . . . 2.1.1 Market Demographics 2.1.2 Market Needs . . . . 2.1.3 Market Trends . . . . 2.1.4 Market Growth . . . . 2.2 SWOT Analysis . . . . . . . . . 2.2.1 Strengths . . . . . . 2.2.2 Weaknesses . . . . . 2.2.3 Opportunities . . . . 2.2.4 Threats . . . . . . . 2.3 Competition . . . . . . . . . . 2.4 Services . . . . . . . . . . . . 2.5 Keys to Success . . . . . . . . 2.6 Critical Issues . . . . . . . . . Marketing Strategy . . . . . 3.1 Mission . . . . . . 3.2 Marketing Objectives 3.3 Financial Objectives 3.4 Target Markets . . 3.5 Positioning . . . . 3.6 Strategy Pyramids . 3.7 Marketing Mix . . . 3.8 Marketing Research Financials . . . . . . . . . . 4.1 Break-even Analysis 4.2 Sales Forecast . . . 4.3 Expense Forecast . . Controls 5.1 5.2 5.3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.0

4.0

. 10 . 10 . 11 . 12 . 13 . 13 . 14 . 14

5.0

. . . . . . . . . . . . Implementation . . . Marketing Organization Contingency Planning .

Creative Concepts Computer Design
1.0 Executive Summary
Creative Concepts Computer Design (CCCD) is a computer consulting firm whose target customers consist of home users and small businesses. The Eugene, OR community will be served by a comprehensive service provider that offers computer education/empowerment as well as problem resolution. CCCD is owned and operated by a seven-year industry veteran Don Digit. Don will leverage his extensive experience to provide the community with high quality consulting services. CCCD's competitive edge consists of their unusual ability to explain or teach complex technical issues to clients of all computing abilities. The ability to translate complex "computerease" into basic English is an unusual and desired skill. This competitive edge allows CCCD to empower clients with new knowledge, making them feel significantly more comfortable in the computing environment where they now interact in so many activities. Creative Concepts will offer computer support to clients of two major categories, home PC users and small office users. These categories will comprise 95% of our operations. Both Windows OS as well as Macintosh OS can be supported. CCCD offers computer consulting for software such as the Office Suite, MS Access and other database applications, Quicken, QuickBooks Pro, Internet technology software, and CD-RW software. Hardware issues that are addressed are the setup of LAN networks, wireless (WI-FI) networks, CD-RW installations, hardware repair/replacement, and all issues relating to broadband connections. CCCD will rapidly gain market share by offering needed services, outstanding customer service, and reasonable prices. CCCD projects earnings of $42,845 by year three.

Annual Sales Forecast

$45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 2003 2004 2005

Home PC Small Businesses

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Creative Concepts Computer Design
2.0 Situation Analysis
CCCD is close to entering their second year of service. The company has been well received , and marketing is now critical to its continued success. The company offers a wide range of computer consulting for both home users as well as small businesses. The basic market need is a reasonably priced computer consulting firm that can translate technical computer information into everyday English, allowing the lay-person to easily understand technical concepts.

2.1 Market Summary
CCCD possess good information about the market and knows a great deal of information about the prized customers. This information will be leveraged to better understand who is served, their specific needs, and how CCCD can better communicate with them.

Target Markets

Home PC Users Small Business Contracts

Table 2.1: Target Market Forecast Target Market Forecast Potential Customers Home PC Users Small Business Contracts Total Growth 2% 3% 2.29% 2003 25,000 10,000 35,000 2004 25,500 10,300 35,800 2005 26,010 10,609 36,619 2006 26,530 10,927 37,457 2007 27,061 11,255 38,316 CAGR 2.00% 3.00% 2.29%

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Creative Concepts Computer Design
2.1.1 Market Demographics
The profile for CCCD's customer consists of the following geographic, demographic, and behavior factors: Geographics • The immediate geographic target is the city of Eugene with a population of 130,000. • A 30-mile geographic area is in need of our services. • The total targeted population is estimated at 4,787. Demographics • • • • Male: female ratio. 48%:52% Ages 26-54 with the median age of 33. Individual income ranges from $34,000-$65,000. 78% of the customers have had some undergraduate coursework and 14.8% have had some graduate coursework.

Behavior Factors • Have increased their reliance on personal computers in all aspects in their lives from shopping, personal finance management, to information gathering. • Strive to become more impendent in their use of the PC. • Have increased the time spent on a PC from 12 hours a month in 1998 to 27.5 hours a month in 2002 for personal use.

2.1.2 Market Needs
CCCD is providing customers with a comprehensive computer consulting service for home users as well as small businesses. CCCD seeks to fulfill the following benefits that are important to their customers. • Comprehensiveness- CCCD seeks to offer a wide range of consulting services, allowing the customer to be served with any type of computer issue that they may encounter. • Teaching ability- While the customer is interested in having their computer problems solved, most customers appreciate being empowered with new abilities and skills, giving them more control within their computing environment. • Customer service- The customer must leave the session believing that all of their needs were met in a manner that exceeded their expectations.

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Creative Concepts Computer Design
2.1.3 Market Trends
The market trend for the use of the PC within the home and the small business environment has been a skyrocketing increase in usage, to a large degree fueled by the proliferation of the Internet, and more recently by broadband connections. The relatively new uses of PCs are for the following tasks: • • • • Personal financial management (including tax preparation and filing). Online bill paying. Internet purchases. Research.

Market Forecast

40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2003 2004 2005 2006 2007

Home PC Users Small Business Contracts

2.1.4 Market Growth
In 1999, 27.8% of the Eugene community used a PC at home. In 2003, that number has soared to 71%. Additionally, the percent of households that had a home Internet connection was 14% in 1999 and has increased to 64% in 2002. The use of PC's within small businesses has not significantly grown in terms of the percent of businesses that have PC's, but the usage of the PC within the business has increased by 39% over a four year period in terms of activities that are now completed with the use of the computer. The increased usage of computers in both the home and business environment can be explained by a number of factors including price decreases, technological improvements, as well as decreases in complexity.

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Creative Concepts Computer Design

Target Market Growth

3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Home PC Users Small Business Contracts

2.2 SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing CCCD.

2.2.1 Strengths
• In-depth, comprehensive industry experience and knowledge. • The unusual ability to teach technical knowledge to a non-technical clientele. • Flexibility- The ability to meet the customer's needs with a customized, flexible solution.

2.2.2 Weaknesses
• As a one person venture (at least initially), the number of clients served is dependant on the time available for the one employee. • The difficulty of building brand equity. • The inability to scale rapidly to meet demand.

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Creative Concepts Computer Design
2.2.3 Opportunities
• Participation within a growing market. • Increased sales opportunities as the limit of technology is continually pushed upward. • A decrease in market share for Apple (MacOS) should increase the reliance of consultants to solve computer issues with the Windows operating system.

2.2.4 Threats
• Future/potential competition from franchised computer consulting firms. • Significant leaps in computer technology making computers far easier to use, decreasing the reliance on professionals for assistance with computer issues. • A significant increase in consumer's knowledge/proficiency of computer technology.

2.3 Competition
There are two main competitors in this area. 1. 2. VOS. They are a well-established provider of computer upgrades and services. Suntech Computers. Smaller and less known than VOS, Suntech provides many services for residents living in East and South Eugene.

Both of these companies charge rates in excess of Creative Concepts, we will be able to attract the price-sensitive market without much work. Our second main advantage is the accessibility of our services. The time conscious customer will appreciate our swift work. Additionally, there are several phone based computer help services that offer help via the phone.

2.4 Services
Creative Concepts will offer computer support to clients of two major categories, home PC users and small office users. These categories will comprise 95% of our operations. Both Windows OS as well as Macintosh OS are supported. CCCD offers computer consulting for software such as the Office Suite, MS Access and other databases, Quicken, QuickBooks Pro, Internet technology software, and CD-RW software. Hardware issues that are addressed are the setup of LAN networks, wireless (WI-FI) networks, CD-RW installations, hardware repair/replacement, and all issues relating to broadband connections.

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Creative Concepts Computer Design
2.5 Keys to Success
The keys to success are simply: • Exceed customer's expectations. • Offer comprehensive, flexible services. • Address market needs.

2.6 Critical Issues
CCCD is still in the speculative stages as a computer consultancy as a result of their young age. It is critical that they continue to take a modest fiscal approach to serving the needs of the clients, expanding only when the demand of the clients warrants expansion, not for the sake of expansion in itself.

3.0 Marketing Strategy
CCCD will employ several programs within their marketing strategy. All of the programs will have the goal of getting the largest bang for the buck as the marketing budget is fairly limited, but a necessary expenditure. CCCD will employ advertisements in two local newspapers, the RegisterGuard and the Eugene Weekly, as well as provide free community workshops as a method of networking. The last element of the marketing strategy will be the use of a robust website that will catalog all of the different services offered by Creative Concepts.

3.1 Mission
Creative Concepts Computer Design's mission is to provide the client with the finest computer consulting services available. CCCD exists to attract and maintain customers. With a strict adherence to this maxim, success will be ensured. Our services will exceed the expectations of our clients.

3.2 Marketing Objectives
The marketing objectives are as follows: 1. 2. 3. Increase sales every month for the first two years. Increase repeat customers by 3% per quarter. Develop a brand image that is synonymous with quality within the Eugene community.

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Creative Concepts Computer Design
3.3 Financial Objectives
The financial objectives include the following goals: 1. 2. 3. Increase the profit margin by 1% per quarter. Hold spending at a steady level as a percentage of sales. Generate sufficient sales to eventually require the need to hire an additional employee.

3.4 Target Markets
Creative Concepts Computer Design will provide computer support in both a consulting and technical capacity to home PC users as well as small business owners. Since Creative Concepts is currently a one-man operation it will be limited in growth to the capacity of work able to be completed. Personal market research indicates an available market niche able to be occupied by additional businesses of this nature. The very nature of the computing industry, with its extraordinary rate of technological development, creates a constant need for businesses skilled in updating and advising customers on computer-related issues. The existing computer service market is so extensive that categorizing it is a rather difficult task. For our revenue-oriented purposes we will define the market as home PC users and small business clients. Home PC users will provide the majority of our business revenue. These jobs will typically consist of minor upgrades, services and advising. The small business market will be defined as customers with five or more computers or a network requiring service or repair.

3.5 Positioning
Creative Concepts will position themselves as the premier computer consulting firm in the Eugene community. The small business community as well as home users will be serviced with professional and effective computer consulting that will solve users problems as well as empower them with new-found control over their technological environment. CCCD will leverage their competitive edge to achieve the desired positioning. CCCD's competitive edge consists of their unusual ability to explain or teach complex technical issues to clients of all computing abilities. The ability to translate complex "computerease" into basic English is an unusual and desired skill. This competitive edge allows CCCD to empower clients with new knowledge, making them feel significantly more comfortable in the computing environment where they now interact in so many activities.

3.6 Strategy Pyramids
The single objective is to position CCCD as the premier computer consultancy, serving both home users as well as small businesses, consistently increasing market penetration. The marketing strategy will seek to generate customer awareness of CCCD's offered services and grow the customer base, building referrals and customer loyalty. The message that CCCD will seek to communicate is that they can offer assistance for any type of computer issue that the customer can think of or encounter. CCCD will employ several different methods of communication. The first method will be the use of advertisements. Ads will be placed in the Register-Guard, Eugene's daily newspaper as well as the Eugene Weekly, the arts and entertainment weekly. CCCD will also use free, community computer presentations/seminars as a communication Page 8

Creative Concepts Computer Design
method. These presentations will be fairly broad based, general presentations/lectures introducing newbies to computer technology. The goal of the presentations will be to introduce the community to CCCD and their unique teaching style. The presentations should develop significant new customer leads. The last method CCCD will utilize is a comprehensive website that will display CCCD's technological proficiency, describe their unique competitive edge of an efficient and effective teaching style, as well as catalog all of the different services offered.

3.7 Marketing Mix
CCCD's marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service. • Pricing- The pricing schedule is generally based on a per hour rate. However, CCCD is flexible in order to meet all of the customer's possible needs including a monthly retainer rate for any problems that arise. • Distribution- Generally the services will be offered at the client's home/place of business. • Advertising and Promotion- A multi-pronged strategy will be used for the advertising/promotion campaign. • Customer Service- CCCD is keenly aware of the need to have exemplary customer support in order to increase their market penetration and achieve sustainable profitability.

3.8 Marketing Research
CCCD used primary marketing research to mine data about the market, customers, and their preferences. An electronic survey was administered to collect the market research. The survey took the form of either an email document or a form that could be completed online at CCCD's website. The survey was issued to people within the target market segment. CCCD received a total of 107 returned surveys that provided Creative Concepts with significant amounts of valuable market research. To ensure accuracy and validity of the surveys, the survey design was outsourced to a statistics professional. The added expense of the survey creation was more than rewarded by accurate, valid market research.

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Creative Concepts Computer Design
4.0 Financials
This section will offer a financial overview of CCCD as it relates to the marketing activities. Creative Concepts will address break-even analysis, sales forecasts, expense forecasts, and how these reports link to the marketing strategy.

4.1 Break-even Analysis
The Break-even Analysis indicates that $463 will be needed in monthly sales to reach the breakeven point.

Break-even Analysis
$600 $400 $200 $0 ($200) ($400) $0 $180 $360 $540 $720 $899

Monthly break-even point
Break-even point = where line intersects with 0

Table 4.1: Break-even Analysis Break-even Analysis: Monthly Units Break-even Monthly Sales Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost 15 $463 $29.98 $5.70 $375

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Creative Concepts Computer Design
4.2 Sales Forecast
The sales strategy is a prediction of slow, controllable growth. Since there is one employee (initially at least), the focus will be on quality and attention to detail especially in the beginning to avoid some potential pitfalls encountered by many new businesses. This should allow for careful examination of variations in demand with regards to season or holidays and still allow enough flexibility to sufficiently compensate.

Monthly Sales Forecast
$3,500 $3,000 $2,500 $2,000

Home PC
$1,500 $1,000 $500 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Small Businesses

Table 4.2: Sales Forecast Sales Forecast Sales Home PC Small Businesses Total Sales Direct Cost of Sales Home PC Small Businesses Subtotal Cost of Sales 2003 $11,874 $6,414 $18,288 2003 $1,781 $962 $2,743 2004 $20,776 $12,338 $33,114 2004 $3,116 $1,851 $4,967 2005 $31,667 $11,178 $42,845 2005 $4,750 $1,677 $6,427

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Creative Concepts Computer Design
4.3 Expense Forecast
The expense forecast will be used as a tool to keep the business on target and to provide indicators when a modification or correction must be made to ensure proper implementation of the marketing plan.

Monthly Expense Budget
$400 $350 $300 $250 $200 $150 $100 $50 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Advertisements Seminars

Table 4.3: Marketing Expense Budget Marketing Expense Budget Advertisements Seminars Total Sales and Marketing Expenses Percent of Sales Contribution Margin Contribution Margin / Sales 2003 $2,020 $1,650 -----------$3,670 20.07% $11,875 64.93% 2004 $2,500 $2,000 -----------$4,500 13.59% $23,647 71.41% 2005 $3,000 $2,400 -----------$5,400 12.60% $31,018 72.40%

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Creative Concepts Computer Design
5.0 Controls
The purpose of CCCD's marketing plan is to serve as a guide for the organization. The following areas will be monitored to gauge performance: • • • • Revenue- monthly and annual. Sales- monthly and annual. New customer acquisition costs. Customer satisfaction.

5.1 Implementation
The following milestones identify the key marketing programs. It is important to accomplish each one on time and on budget.

Milestones

Marketing Plan Completion

Webiste Completion

Seminar #1

Seminar #2

Seminar #3

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Table 5.1: Milestones Milestones Milestone Marketing Plan Completion Webiste Completion Seminar #1 Seminar #2 Seminar #3 Totals Plan Start Date 1/1/03 1/1/03 2/1/03 5/1/03 8/1/03 End Date 2/1/03 2/1/03 4/30/03 7/30/03 10/30/03 Budget $0 $0 $450 $550 $650 $1,650 Manager Don Don Don Don Don Department

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Creative Concepts Computer Design
5.2 Marketing Organization
Don Digit will be responsible for CCCD's marketing activities.

5.3 Contingency Planning
Difficulties and risks: • Problems generating visibility. • Overly aggressive or debilitating actions from a franchised competitor. Worst case risks include: • Determining that the business cannot support itself on an ongoing basis. • Having to liquidate equipment to cover liabilities.

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Appendix: Creative Concepts Computer Design
Table 4.2 Sales Forecast Sales Forecast Sales Home PC Small Businesses Total Sales Direct Cost of Sales Home PC Small Businesses Subtotal Cost of Sales Plan Jan $300 $300 $600 Jan $45 $45 $90 Feb $360 $330 $690 Feb $54 $50 $104 Mar $432 $363 $795 Mar $65 $54 $119 Apr $518 $399 $917 Apr $78 $60 $138 May $622 $439 $1,061 May $93 $66 $159 Jun $746 $483 $1,229 Jun $112 $72 $184 Jul $896 $531 $1,427 Jul $134 $80 $214 Aug $1,075 $585 $1,660 Aug $161 $88 $249 Sep $1,290 $643 $1,933 Sep $194 $96 $290 Oct $1,548 $707 $2,255 Oct $232 $106 $338 Nov $1,858 $778 $2,636 Nov $279 $117 $395 Dec $2,229 $856 $3,085 Dec $334 $128 $463

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Appendix: Creative Concepts Computer Design
Table 4.3 Marketing Expense Budget Marketing Expense Budget Advertisements Seminars Total Sales and Marketing Expenses Percent of Sales Contribution Margin Contribution Margin / Sales Jan $150 $0 -----------$150 25.00% $360 60.00% Feb $200 $100 -----------$300 43.48% $287 41.52% Mar $250 $100 -----------$350 44.03% $326 40.97% Apr $300 $100 -----------$400 43.62% $379 41.38% May $100 $100 -----------$200 18.85% $702 66.15% Jun $125 $150 -----------$275 22.38% $770 62.62% Jul $140 $150 -----------$290 20.32% $923 64.68% Aug $150 $150 -----------$300 18.07% $1,111 66.93% Sep $125 $200 -----------$325 16.81% $1,318 68.19% Oct $130 $200 -----------$330 14.63% $1,587 70.37% Nov $150 $200 -----------$350 13.28% $1,891 71.72% Dec $200 $200 -----------$400 12.97% $2,222 72.03%

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