*****************************************************************************

FIRM 1: DWCONSULWARE INDUSTRY P

CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 1-1, QUARTER 7 PAGE 1
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

REGIONS (LATIN AM) (U.S. ) (U.K. ) (EUROPE )
─────────── ─────────── ─────────── ─────────── ───────────

ACTIVE PRODUCT? YES NO NO NO YES

SALES (Units) 12,905 0 0 0 12,905
UNFILLED ORDERS 0 0 0 0 0

PRICE 650 650 650 650 650

DEALER REBATES 0 10 0 10 0

REVENUE 8,388,250 0 0 0 8,388,250

PRODUCT COSTS 3,743,740 0 0 0 3,743,740
REBATES OFFERED 0 0 0 0 0
SALES COMMISSIONS 83,882 0 0 0 83,882
TRANSPORTATION 425,865 0 0 0 425,865
DUTIES & TARIFFS 503,294 0 0 0 503,294
─────────── ─────────── ─────────── ─────────── ───────────
GROSS MARGIN 3,631,469 0 0 0 3,631,469

FIXED COSTS:
ADMINISTRAT O/H 139,480 0 0 0 139,480
ADVERTISING 500,000 0 0 0 500,000
PROMOTION 500,000 0 0 0 500,000
SALES SALARIES 262,500 0 0 0 262,500
SALES O/H 346,382 0 0 0 346,382
TOTAL FIXED COSTS 1,748,362 0 0 0 1,748,362
─────────── ─────────── ─────────── ─────────── ───────────
OPERATING INCOME 1,883,107 0 0 0 1,883,107

═════════════════════════════════════════════════════════════════════════════
MEDIA CONTENT & MIX 1 & 55555 1 & 55555 2 & 55555 1 & 55555
PROMOTIONAL TYPE 10 10 10 10

SALES FORCE:
SIZE 50 120 50 70
TIME ALLOCATION (%s) 0 0 0 50
EFFORT .00 .00 .00 35.00
SALARY + COMMISSION 2,500 + 1 2,500 + 1 2,500 + 1 2,500 + 1

SALES VOLUME FORECAST (Units) 0 0 0 18,000

PRODUCT COMPOSITION 30/30/30/ 5/ 5/5/5

PRODUCTION ORDER (Units) 0

EMERGENCY PRODUCTION LIMIT (%) 0
RESEARCH & DEVELOPMENT 250,000

PLANT CAPACITY ORDER (Units) 0

*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 1-2, QUARTER 7 PAGE 2
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

REGIONS (LATIN AM) (U.S. ) (U.K. ) (EUROPE )
─────────── ─────────── ─────────── ─────────── ───────────

ACTIVE PRODUCT? YES YES YES YES NO

SALES (Units) 79,876 120 79,184 572 0
UNFILLED ORDERS 1,287 2 1,270 15 0

PRICE 899 800 900 800 700

DEALER REBATES 10 10 10 10 10

REVENUE 71,819,200 96,000 71,265,600 457,600 0

PRODUCT COSTS 32,966,478 49,526 32,680,876 236,076 0
REBATES OFFERED 798,760 1,200 791,840 5,720 0
SALES COMMISSIONS 718,192 960 712,656 4,576 0
TRANSPORTATION 1,682,516 1,920 1,662,864 17,732 0
DUTIES & TARIFFS 1,443,614 0 1,425,311 18,303 0
─────────── ─────────── ─────────── ─────────── ───────────
GROSS MARGIN 34,209,640 42,394 33,992,053 175,193 0

FIXED COSTS:
ADMINISTRAT O/H 350,282 100,000 150,282 100,000 0
ADVERTISING 1,600,000 300,000 1,000,000 300,000 0
PROMOTION 1,000,000 250,000 500,000 250,000 0
SALES SALARIES 825,000 187,500 450,000 187,500 0
SALES O/H 1,543,192 188,460 1,162,656 192,076 0
TOTAL FIXED COSTS 5,318,474 1,025,960 3,262,938 1,029,576 0
─────────── ─────────── ─────────── ─────────── ───────────
OPERATING INCOME 28,891,166 -983,566 30,729,115 -854,383 0

═════════════════════════════════════════════════════════════════════════════
MEDIA CONTENT & MIX 1 & 55555 1 & 55555 1 & 55555 1 & 22225
PROMOTIONAL TYPE 10 10 10 14

SALES FORCE:
SIZE 50 120 50 70
TIME ALLOCATION (%s) 50 50 50 0
EFFORT 25.00 60.00 25.00 .00
SALARY + COMMISSION 2,500 + 1 2,500 + 1 2,500 + 1 2,500 + 1

SALES VOLUME FORECAST (Units) 10,000 40,000 10,000 0

PRODUCT COMPOSITION 51/30/63/51/ 5/5/5

PRODUCTION ORDER (Units) 0

EMERGENCY PRODUCTION LIMIT (%) 0
RESEARCH & DEVELOPMENT 250,000

PLANT CAPACITY ORDER (Units) 0

*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 1-3, QUARTER 7 PAGE 3
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

REGIONS (LATIN AM) (U.S. ) (U.K. ) (EUROPE )
─────────── ─────────── ─────────── ─────────── ───────────

ACTIVE PRODUCT? YES YES YES YES YES

SALES (Units) 10,478 168 109 617 9,584
UNFILLED ORDERS 0 0 0 0 0

PRICE 906 650 650 650 930

DEALER REBATES 10 10 10 10 10

REVENUE 9,494,220 109,200 70,850 401,050 8,913,120

PRODUCT COSTS 5,212,638 83,577 54,225 306,947 4,767,889
REBATES OFFERED 104,780 1,680 1,090 6,170 95,840
SALES COMMISSIONS 94,941 1,092 708 4,010 89,131
TRANSPORTATION 340,376 2,688 2,289 19,127 316,272
DUTIES & TARIFFS 552,244 0 1,416 16,041 534,787
─────────── ─────────── ─────────── ─────────── ───────────
GROSS MARGIN 3,189,241 20,163 11,122 48,755 3,109,201

FIXED COSTS:
ADMINISTRAT O/H 404,340 100,000 100,000 100,000 104,340
ADVERTISING 3,000,000 500,000 1,000,000 500,000 1,000,000
PROMOTION 1,500,000 250,000 500,000 250,000 500,000
SALES SALARIES 1,087,500 187,500 450,000 187,500 262,500
SALES O/H 1,182,441 188,592 450,708 191,510 351,631
TOTAL FIXED COSTS 7,174,281 1,226,092 2,500,708 1,229,010 2,218,471
─────────── ─────────── ─────────── ─────────── ───────────
OPERATING INCOME -3,985,040 -1,205,929 -2,489,586 -1,180,255 890,730

═════════════════════════════════════════════════════════════════════════════
MEDIA CONTENT & MIX 1 & 55555 1 & 55555 1 & 55555 1 & 55555
PROMOTIONAL TYPE 10 10 10 10

SALES FORCE:
SIZE 50 120 50 70
TIME ALLOCATION (%s) 50 50 50 50
EFFORT 25.00 60.00 25.00 35.00
SALARY + COMMISSION 2,500 + 1 2,500 + 1 2,500 + 1 2,500 + 1

SALES VOLUME FORECAST (Units) 10,000 20,000 10,000 10,000

PRODUCT COMPOSITION 44/11/20/44/ 5/5/5

PRODUCTION ORDER (Units) 20,000

EMERGENCY PRODUCTION LIMIT (%) 0
RESEARCH & DEVELOPMENT 250,000

PLANT CAPACITY ORDER (Units) 0

*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
CURRENT DIVISIONAL OPERATING STATEMENT, FIRM 1, QUARTER 7 PAGE 4
*****************************************************************************

ALL PRODUCT PRODUCT PRODUCT

PRODUCTS 1-1 1-2 1-3
─────────── ─────────── ─────────── ───────────

SALES (Units) 103,259 12,905 79,876 10,478

UNFILLED ORDERS 1,287 0 1,287 0

PRICE 868 650 899 906

DEALER REBATES 8 0 10 10

REVENUE 89,701,670 8,388,250 71,819,200 9,494,220

PRODUCT COSTS 41,922,856 3,743,740 32,966,478 5,212,638
REBATES OFFERED 903,540 0 798,760 104,780
SALES COMMISSIONS 897,015 83,882 718,192 94,941
TRANSPORTATION 2,448,757 425,865 1,682,516 340,376
DUTIES & TARIFFS 2,499,152 503,294 1,443,614 552,244
─────────── ─────────── ─────────── ───────────
GROSS MARGIN 41,030,350 3,631,469 34,209,640 3,189,241

FIXED COSTS:
ADMINISTRAT O/H 894,102 139,480 350,282 404,340
ADVERTISING 5,100,000 500,000 1,600,000 3,000,000
CONSULTING FEES 0
CORPORATE O/H 750,000
DEPRECIATION 449,999
DISPOSAL SALES 0 0 0 0
EMERG PREMIUMS 0 0 0 0
INTRODUCTIONS 1,200,000 0 0 1,200,000
INVENTORY CHARG 1,360,352 112,740 824,203 423,409
MARKET RESEARCH 667,000
PROD ORDER COST 100,000 0 0 100,000
PROMOTION 3,000,000 500,000 1,000,000 1,500,000
REFORMULATIONS 0 0 0 0
RESEARCH & DEV 750,000 250,000 250,000 250,000
SALES EXPENSES 125,000
SALES SALARIES 2,175,000 262,500 825,000 1,087,500
SALES O/H 3,072,015 346,382 1,543,192 1,182,441
TOTAL FIXED COSTS 19,643,468 2,111,102 6,392,677 9,147,690
─────────── ─────────── ─────────── ───────────
OPERATING INCOME 21,386,882 1,520,367 27,816,963 -5,958,449
─────────── ─────────── ─────────── ───────────
NON-OPERAT INCOME 88,328
LESS: TAXES 10,737,605
═══════════
NET INCOME 10,737,605
═══════════
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
CUMULATIVE DIVISIONAL OPERATING STATEMENT, FIRM 1, QUARTER 7 PAGE 5
*****************************************************************************

ALL PRODUCT PRODUCT PRODUCT

PRODUCTS 1-1 1-2 1-3
─────────── ─────────── ─────────── ───────────

SALES (Units) 250,093 59,452 172,637 18,004

UNFILLED ORDERS 1,287 0 1,287 0

PRICE 841 650 899 916

DEALER REBATES 8 2 10 10

REVENUE 210,441,300 38,643,800 155,304,100 16,493,400

PRODUCT COSTS 97,326,725 17,247,019 71,250,862 8,828,844
REBATES OFFERED 2,027,200 120,790 1,726,370 180,040
SALES COMMISSIONS 2,104,409 386,436 1,553,041 164,932
TRANSPORTATION 6,034,737 1,812,151 3,633,852 588,734
DUTIES & TARIFFS 5,996,665 1,906,302 3,118,169 972,194
─────────── ─────────── ─────────── ───────────
GROSS MARGIN 96,951,564 17,171,102 74,021,806 5,758,656

FIXED COSTS:
ADMINISTRAT O/H 2,367,736 872,853 798,014 696,869
ADVERTISING 16,100,000 5,500,000 5,600,000 5,000,000
CONSULTING FEES 0
CORPORATE O/H 2,250,000
DEPRECIATION 3,824,998
DISPOSAL SALES 0 0 0 0
EMERG PREMIUMS 0 0 0 0
INTRODUCTIONS 2,400,000 0 800,000 1,600,000
INVENTORY CHARG 7,025,260 834,190 5,193,350 997,720
MARKET RESEARCH 1,994,000
PROD ORDER COST 400,000 100,000 100,000 200,000
PROMOTION 8,500,000 3,000,000 3,000,000 2,500,000
REFORMULATIONS 2,500,000 0 0 2,500,000
RESEARCH & DEV 2,250,000 750,000 750,000 750,000
SALES EXPENSES 125,000
SALES SALARIES 5,775,000 1,642,500 2,520,000 1,612,500
SALES O/H 7,879,409 2,028,936 4,073,041 1,777,432
TOTAL FIXED COSTS 63,391,403 14,728,479 22,834,405 17,634,521
─────────── ─────────── ─────────── ───────────
OPERATING INCOME 33,560,161 2,442,623 51,187,401 -11,875,865
─────────── ─────────── ─────────── ───────────
NON-OPERAT INCOME -10,969,836
LESS: TAXES 11,295,163
═══════════
NET INCOME 11,295,162
═══════════
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
DIVISIONAL BALANCE SHEET, FIRM 1, QUARTER 7 PAGE 6
*****************************************************************************

ASSETS
──────
CASH 7,176,133
MARKETABLE SECURITIES 21,048,881
FINISHED GOODS INVENTORY:
PRODUCT 1-1 ( 1,320 Units) [$ 290.10 Per Unit] 382,933
PRODUCT 1-2 ( 2 Units) [$ 412.50 Per Unit] 825
PRODUCT 1-3 ( 21,996 Units) [$ 497.48 Per Unit] 10,942,667
PLANT {located in Region 1 (LATIN AM)}:
CURRENT PLANT [CAPACITY = 103,259] 77,444,999
PLANT ON ORDER FOR 1 QUARTER HENCE [CAPACITY = 0] 0
TOTAL ASSETS 116,996,438

LIABILITIES AND EQUITY

──────────────────────
LOANS 0
INITIAL (QUARTER 0) CORPORATE CAPITALIZATION 100,000,000
- DIVIDENDS PAID, PRIOR TO THIS YEAR 0
- DIVIDENDS PAID, END OF QUARTER 1 OF THIS YEAR 0
- DIVIDENDS PAID, END OF QUARTER 2 OF THIS YEAR 0
- DIVIDENDS PAID, END OF QUARTER 3 OF THIS YEAR 0
- DIVIDENDS PAID, END OF QUARTER 4 OF THIS YEAR 0
+ RETAINED EARNINGS (AFTER-TAX INCOME PRIOR TO THIS YEAR) 5,701,276
+ YEAR-TO-DATE EARNINGS (AFTER-TAX INCOME THIS YEAR) 11,295,162
TOTAL LIABILITIES AND EQUITY 116,996,438

*****************************************************************************
FINISHED GOODS INVENTORY TRANSACTIONS, FIRM 1, QUARTER 7 PAGE 6
*****************************************************************************

PRODUCT PRODUCT PRODUCT

1-1 1-2 1-3
───────── ───────── ─────────

BEGINNING INVENTORY 14,225 79,878 12,474

+ PRODUCTION 0 0 20,000
+ EMERGENCY PRODUCTION 0 0 0
= AVAILABLE FOR SALE 14,225 79,878 32,474
- SALES
REGION 1 (LATIN AM) 0 -120 -168
REGION 2 (U.S. ) 0 -79,184 -109
REGION 3 (U.K. ) 0 -572 -617
REGION 4 (EUROPE ) -12,905 0 -9,584
= ENDING INVENTORY 1,320 2 21,996
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
CASH FLOW ANALYSIS REPORT, FIRM 1, QUARTER 7 PAGE 7
*****************************************************************************

STARTING "CASH" BALANCE (FINAL "CASH" BALANCE, QUARTER 6) 4,961,941

+ "MARKETABLE SECURITIES" (CONVERTED TO "CASH" IN QUARTER 7) 3,925,715
- "LOANS" (LIQUIDATED DURING QUARTER 7) 0
+ "FINISHED GOODS INVENTORY" INVESTMENT CHANGES
PRODUCT 1-1 (From 4,126,673 To 382,933) 3,743,740
PRODUCT 1-2 (From 32,967,306 To 825) 32,966,481
PRODUCT 1-3 (From 5,993,698 To 10,942,667) -4,948,969
+ "PLANT" INVESTMENT CHANGE (From 54,283,500 To 77,444,999) -23,161,499
+ "NET INCOME" 10,737,605
= INITIAL END-OF-QUARTER "CASH" BALANCE 28,225,014
- "DIVIDENDS" (PAID AT END OF QUARTER 7) 0
= ACTUAL "CASH" BALANCE (END OF QUARTER 7) 28,225,014
- OPERATING "CASH" EXCESS (TO "MARKETABLE SECURITIES") -21,048,881
+ OPERATING "CASH" DEFICIT (FROM "LOANS") 0
= FINAL "CASH" BALANCE (END OF QUARTER 7) 7,176,133

*** NOTES ***

(1) "MARKETABLE SECURITIES" and "LOANS" in the second and third lines above
refer to the values on last quarter's balance sheet.
(2) INVESTMENT CHANGEs can be positive, negative, or zero. A positive
(negative) {zero} INVESTMENT CHANGE corresponds to an increase (a
decrease) {no change} in the dollar value of the investment from last
quarter to this quarter which leads to a decrease (an increase) {no
change} in current-quarter "CASH" balance.
(3) In every quarter, plant capacity depreciates. The depreciation process
results in additions to cash, by converting investment in plant capacity
to cash which may be used for other operating and investment purposes.
The net "PLANT" INVESTMENT CHANGE includes this cash-increasing effect
as well as the cash-decreasing impact of ordering new plant capacity.
(4) At most, one of OPERATING "CASH" EXCESS and OPERATING "CASH" DEFICIT will
be non-zero; it is possible for both to be zero. Recall that "CASH" must
be between 5.0% and 8.0% of current-quarter sales revenues. Excess
"CASH" (above 8.0% of revenues) is invested in marketable securities;
shortfalls in "CASH" (below 5.0% of revenues) result in loans.

*****************************************************************************
OPERATING PERFORMANCE REPORT, FIRM 1, QUARTER 7 PAGE 7
*****************************************************************************

MARKET SHARES (%)

─────────────────
REVENUES ($) EARNINGS ($) ROI (%) VOLUME DOLLAR
──────────── ──────────── ─────── ─────── ───────

CURRENT QUARTER 89,701,670 10,737,605 40.6 19.71 15.39

PREVIOUS QUARTER 62,024,270 2,194,814 8.3 13.86 12.73
CHANGE RATE 44.6% 389.2% 389.2% 42.2% 20.9%
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
DETAILED VARIABLE COST CALCULATIONS, FIRM 1, QUARTER 7 PAGE 8
*****************************************************************************

PRODUCT PRODUCT PRODUCT

COST COMPONENTS 1-1 1-2 1-3
──────────────────────────────────────── ──────── ──────── ────────

RAW MATERIAL #1 [SYNTECH] 22.50 38.25 33.00

RAW MATERIAL #2 [PLUMBO] 135.00 135.00 49.50
RAW MATERIAL #3 [GLOMP] 13.50 28.35 9.00
RAW MATERIAL #4 [TRIMICRO] 1.50 15.30 13.20
RAW MATERIAL #5 [FRALANGE] .75 .75 .75
RAW MATERIAL (Experience Curve Adjust.) -63.26 -51.53 .00
LABOR (Base) 30.00 30.00 30.00
LABOR (Smoothing Adjustment) .00 .00 30.00
LABOR (Experience Curve Adjustment) -12.61 -8.31 .00
PRODUCTION (Base) 60.00 60.00 60.00
PRODUCTION (Smoothing Adjustment) .00 .00 60.00
PRODUCTION (Experience Curve Adjustment) -25.22 -16.62 .00
PACKAGING 10.00 10.00 10.00
VARIABLE DEPRECIATION 72.00 72.00 72.00

SUB-TOTAL VARIABLE COSTS 244.17 313.19 367.45

COMPATIBILITY (Cost Premium Impact) 39.07 50.11 58.79

WARRANTY (Cost Premium Impact) 54.38 69.75 81.84

TOTAL VARIABLE COSTS 337.62 433.06 508.08

*****************************************************************************
PRODUCT COST ANALYSIS ESTIMATES, FIRM 1, QUARTER 8 PAGE 8
*****************************************************************************
ESTIMATES OF NEXT QUARTER
EXPERIENCE CURVE ADJUSTED
VARIABLE (Per Unit) COSTS MARGIN ANALYSIS
──────────────────────────────── ══════════════════════════
RAW PDCOST PROD
MATERI +PKCST +LABOR TOTAL PRICE COST MARGIN
────── ────── ────── ──────── ──────── ──────── ────────

PRODUCT 1-1 109.99 100.00 52.18 362.51 650.00 362.51 287.49

PRODUCT 1-2 166.12 100.00 65.08 457.95 899.00 457.95 441.05
PRODUCT 1-3 105.45 100.00 90.00 408.53 906.00 408.53 497.47

*** NOTES ***

(1) Variable depreciation cost (PDCOST) has been estimated assuming that
production next quarter is equal to plant capacity.
(2) In this table, PKCST refers to packaging cost.
(3) MARGIN ANALYSIS figures do not include transportation, shipping, duties,
and tariffs. Also, dealer rebates have been assumed to be $0.
(4) TOTAL includes cost-premium impacts of Compatibility and Warranty.
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
SALES FORECASTING ACCURACY REPORT, FIRM 1, QUARTER 7 PAGE 9
*****************************************************************************

MARKET SALES ACTUAL UNFILLED ACTUAL + ACCURACY

PRODUCT REGION FORECAST SALES ORDERS UNFILLED SCORE
─────── ────── ──────── ──────── ──────── ──────── ────────

1-1 4 18,000 12,905 0 12,905 60.52

1-2 1 10,000 120 2 122 n/a
1-2 2 40,000 79,184 1,270 80,454 49.72
1-2 3 10,000 572 15 587 n/a
1-3 1 10,000 168 0 168 n/a
1-3 2 20,000 109 0 109 n/a
1-3 3 10,000 617 0 617 n/a
1-3 4 10,000 9,584 0 9,584 95.66
AVERAGE (Current Quarter) 68.63

ON 10 SALES VOLUME FORECASTS IN THE CURRENT YEAR:

CUMULATIVE (Total) FORECASTING SCORE POINTS = 532.26
AVERAGE FORECASTING SCORE (Per Forecast) = 53.23

*** NOTE ***

Only forecasts associated with actual market shares of at least 2.5% in a
market region are counted in the calculation of forecasting accuracy scores.
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
MARKETING RESEARCH BILLINGS, FIRM 1, QUARTER 7 PAGE 10
*****************************************************************************

STUDY UNIT
# MARKETING RESEARCH STUDY DESCRIPTION COST TIMES COST
───── ──────────────────────────────────────── ─────── ──────── ─────────

1 COMP INFO - DIVIDENDS AND EARNINGS 1,000 4 4,000

11 CUSTOMER BRAND AWARENESS 7,000 1 7,000
17 BRAND QUALITY RATINGS 5,000 1 5,000
19 COMPETITIVE INFORMATION - BALANCE SHEETS 20,000 4 80,000
21 BRAND PERCEPTUAL RATINGS 25,000 1 25,000
24 MARKET SHARES 2,500 1 2,500
25 DEALER PRICES 2,500 1 2,500
26 DEALER REBATES 3,000 1 3,000
27 DEALER PROMOTION AWARENESS 4,000 1 4,000
31 INDUSTRY SALES VOLUME FORECASTS 2,500 1 2,500
32 BRAND SALES VOLUME FORECASTS 5,000 1 5,000
36 COMPETITIVE INFORMATION - BRAND PROFILES 10,000 29 290,000
37 COMPETITIVE INFORMATION - SFC STATISTICS 40,000 1 40,000
39 COMPETITIVE INFORMATION - UNFILLED ORDER 10,000 1 10,000
40 COMPETITIVE INFORMATION - BRAND MARGINS 60,000 1 60,000
41 REGIONAL SUMMARY ANALYSIS 1 48,500 48,500
47 SELF-REPORTED ATTRIBUTE PREFERENCES 5,000 4 20,000
48 BRAND SATISFACTION RATINGS 10,000 1 10,000
55 INFORMATION SYSTEMS COSTS {PAGE COUNTS} 1,000 48 48,000

TOTAL 667,000

*** NOTE ***

This marketing research billing report is based on marketing research pre-
ordered for quarter 6 and billed in connection with quarter 7. Marketing
research study premium rates, in connection with syndicated and custom
marketing research, are based on quarter 6.
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
FINANCIAL AND OPERATING STATEMENT MESSAGES, FIRM 1, QUARTER 7 PAGE 11
*****************************************************************************

EMERGENCY PRODUCTION ACTIVITY

No products have emergency production this quarter.

INVENTORY LEVELS
Product 1-3 inventory is 21,996 units, which represents 2.1 quarters
of sales, at the current sales volume levels for this product.

PRODUCT FORMULATION STATUS

Product 1-1 has formulation 30/30/30/ 5/ 5/5/5 and patent zone of 3.
Product 1-2 has formulation 51/30/63/51/ 5/5/5 and patent zone of 3.
Product 1-3 has formulation 44/11/20/44/ 5/5/5 and patent zone of 3.

CUMULATIVE PRODUCTION EXPERIENCE WITH CURRENT FORMULATION

Product 1-1 has cumulative production experience of 376,000 units.
Product 1-2 has cumulative production experience of 200,000 units.
Product 1-3 has cumulative production experience of 40,000 units.

SALES FORECASTING ACCURACY SCORES

Product 1-2, region 2, sales forecasting accuracy is very poor [ 49.72].
Product 1-3, region 4, sales forecasting accuracy is excellent [ 95.66].

REGIONAL GROSS MARGINS

Product 1-3 in region 1 only has a contribution margin of 18.5%.
Product 1-3 in region 2 only has a contribution margin of 15.7%.
Product 1-3 in region 3 only has a contribution margin of 12.2%.

SPECIAL NOTES, REMINDERS, AND WARNING MESSAGES

Product 1-2, area 1, has unfilled orders of 2 units:
With total potential sales volume of 120 units {SALES (Units)
plus UNFILLED ORDERS} and an emergency production limit of 0%, a
maximum of 0 units of emergency production are possible for
sale in this market region.
Product 1-2, area 2, has unfilled orders of 1,270 units:
With total potential sales volume of 79,184 units {SALES (Units)
plus UNFILLED ORDERS} and an emergency production limit of 0%, a
maximum of 0 units of emergency production are possible for
sale in this market region.
Product 1-2, area 3, has unfilled orders of 15 units:
With total potential sales volume of 572 units {SALES (Units)
plus UNFILLED ORDERS} and an emergency production limit of 0%, a
maximum of 0 units of emergency production are possible for
sale in this market region.
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
SPECIAL BRANDMAPS NOTICES, FIRM 1, QUARTER 7 PAGE 12
*****************************************************************************

BRANDS: ONLY SOME BRANDS ARE AVAILABLE FOR USE AT THIS TIME
Brand 1 is available for use.
Brand 2 is available for use.
Brand 3 is available for use.
Brand 4 is not available for use.

CAPACITY: AUTOMATIC CAPACITY MANAGEMENT EXISTS IN BRANDMAPS

BRANDMAPS is managing capacity ordering decisions. Appropriate amounts
of capacity are automatically added to or deleted from your current
capacity each quarter to ensure that current capacity is always equal to
current sales volume. (There are no penalties for these instantaneous
capacity adjustments, although such capacity adjustments involve cash
flows equal to the current value of plant capacity orders.) Your firm is
operating at exactly 100% capacity each quarter.

DECISIONS: SOME DECISION VARIABLES ARE AUTOMATICALLY CONTROLLED OR FIXED

Reformulation bidding decisions are fixed and may not be changed.
Capacity ordering decisions are controlled automatically by BRANDMAPS.
Emergency production limit decisions are fixed and may not be changed.

SEASONALITY: SEASONALITY DOES NOT EXIST IN BRANDMAPS

Extensive recent marketing research shows that seasonality does not seem
to exist in the vaporware industry. Prior widely-held beliefs about
vaporware sales seasonality are incorrect.

INFORMATION REPORTING: SOME INFORMATION IS NOT REPORTED AT THIS TIME

Cumulative profit-and-loss statements are not reported at this time.
Stock prices are not reported at this time.

VAPORWARE TECHNOLOGY CONSTRAINTS

Product attributes #1-#5 must sum to between 75 and 200.
Attribute #5 [Fralange ] must equal 5.

REGION-SPECIFIC COSTS
Transportation Duties &
and Shipping Tariffs
────────────── ────────
Region 1 (LATIN AM) $ 16.00/unit .0%
Region 2 (U.S. ) $ 21.00/unit 2.0%
Region 3 (U.K. ) $ 31.00/unit 4.0%
Region 4 (EUROPE ) $ 33.00/unit 6.0%