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

FIRM 1: DWCONSULWARE INDUSTRY P

CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 1-1, QUARTER 8 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) 15,000 0 0 0 15,000
UNFILLED ORDERS 2,824 0 0 0 2,824

PRICE 650 650 650 650 650

DEALER REBATES 0 10 0 10 0

REVENUE 9,750,000 0 0 0 9,750,000

PRODUCT COSTS 9,599,891 0 0 0 9,599,891
REBATES OFFERED 0 0 0 0 0
SALES COMMISSIONS 97,500 0 0 0 97,500
TRANSPORTATION 495,000 0 0 0 495,000
DUTIES & TARIFFS 584,999 0 0 0 584,999
─────────── ─────────── ─────────── ─────────── ───────────
GROSS MARGIN -1,027,390 0 0 0 -1,027,390

FIXED COSTS:
ADMINISTRAT O/H 115,843 0 0 0 115,843
ADVERTISING 500,000 0 0 0 500,000
PROMOTION 250,000 0 0 0 250,000
SALES SALARIES 262,500 0 0 0 262,500
SALES O/H 360,000 0 0 0 360,000
TOTAL FIXED COSTS 1,488,343 0 0 0 1,488,343
─────────── ─────────── ─────────── ─────────── ───────────
OPERATING INCOME -2,515,733 0 0 0 -2,515,733

═════════════════════════════════════════════════════════════════════════════
MEDIA CONTENT & MIX 1 & 55555 1 & 55555 2 & 55555 13 & 55999
PROMOTIONAL TYPE 10 10 10 10

SALES FORCE:
SIZE 0 0 50 70
TIME ALLOCATION (%s) 33 50 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 15,000

PRODUCT COMPOSITION 32/30/30/32/ 5/5/5

PRODUCTION ORDER (Units) 15,000

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

PLANT CAPACITY ORDER (Units) 0

*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 1-1, QUARTER 8 PAGE 2
*****************************************************************************

REGION 5
(PACIFIC )
───────────

ACTIVE PRODUCT? NO
SALES (Units) 0
UNFILLED ORDERS 0

PRICE 650
DEALER REBATES 0

REVENUE 0
PRODUCT COSTS 0
REBATES OFFERED 0
SALES COMMISSIONS 0
TRANSPORTATION 0
DUTIES & TARIFFS 0
───────────
GROSS MARGIN 0

FIXED COSTS:
ADMINISTRAT O/H 0
ADVERTISING 0
PROMOTION 0
SALES SALARIES 0
SALES O/H 0
TOTAL FIXED COSTS 0
───────────
OPERATING INCOME 0

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

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

SALES VOLUME FORECAST (Units) 0

PRODUCT COMPOSITION 32/30/30/32/ 5/5/5

PRODUCTION ORDER (Units) 15,000

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 8 PAGE 3
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

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

ACTIVE PRODUCT? YES NO NO NO NO

SALES (Units) 25,251 0 0 0 0
UNFILLED ORDERS 0 0 0 0 0

PRICE 850 800 900 800 700

DEALER REBATES 10 10 10 10 10

REVENUE 21,463,350 0 0 0 0
PRODUCT COSTS 13,835,693 0 0 0 0
REBATES OFFERED 252,510 0 0 0 0
SALES COMMISSIONS 214,633 0 0 0 0
TRANSPORTATION 934,287 0 0 0 0
DUTIES & TARIFFS 1,717,067 0 0 0 0
─────────── ─────────── ─────────── ─────────── ───────────
GROSS MARGIN 4,509,160 0 0 0 0

FIXED COSTS:
ADMINISTRAT O/H 140,596 0 0 0 0
ADVERTISING 1,000,000 0 0 0 0
PROMOTION 500,000 0 0 0 0
SALES SALARIES 375,000 0 0 0 0
SALES O/H 589,633 0 0 0 0
TOTAL FIXED COSTS 2,605,229 0 0 0 0
─────────── ─────────── ─────────── ─────────── ───────────
OPERATING INCOME 1,903,931 0 0 0 0

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

SALES FORCE:
SIZE 0 0 50 70
TIME ALLOCATION (%s) 33 50 0 0
EFFORT .00 .00 .00 .00
SALARY + COMMISSION 2,500 + 1 2,500 + 1 2,500 + 1 2,500 + 1

SALES VOLUME FORECAST (Units) 0 0 0 0

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

PRODUCTION ORDER (Units) 100,000

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 8 PAGE 4
*****************************************************************************

REGION 5
(PACIFIC )
───────────

ACTIVE PRODUCT? YES

SALES (Units) 25,251
UNFILLED ORDERS 0

PRICE 850
DEALER REBATES 10

REVENUE 21,463,350
PRODUCT COSTS 13,835,693
REBATES OFFERED 252,510
SALES COMMISSIONS 214,633
TRANSPORTATION 934,287
DUTIES & TARIFFS 1,717,067
───────────
GROSS MARGIN 4,509,160

FIXED COSTS:
ADMINISTRAT O/H 140,596
ADVERTISING 1,000,000
PROMOTION 500,000
SALES SALARIES 375,000
SALES O/H 589,633
TOTAL FIXED COSTS 2,605,229
───────────
OPERATING INCOME 1,903,931

═════════════════════════════════════════════════════════════════════════════
MEDIA CONTENT & MIX 13 & 55999
PROMOTIONAL TYPE 10

SALES FORCE:
SIZE 50
TIME ALLOCATION (%s) 100
EFFORT 50.00
SALARY + COMMISSION 2,500 + 1

SALES VOLUME FORECAST (Units) 15,000

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

PRODUCTION ORDER (Units) 100,000

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 8 PAGE 5
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

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

ACTIVE PRODUCT? YES NO NO YES YES

SALES (Units) 11,102 0 0 389 10,713
UNFILLED ORDERS 0 0 0 0 0

PRICE 930 650 650 930 930

DEALER REBATES 10 10 10 10 10

REVENUE 10,324,860 0 0 361,770 9,963,090

PRODUCT COSTS 5,052,729 0 0 177,041 4,875,688
REBATES OFFERED 111,020 0 0 3,890 107,130
SALES COMMISSIONS 103,247 0 0 3,617 99,630
TRANSPORTATION 365,588 0 0 12,059 353,529
DUTIES & TARIFFS 612,255 0 0 14,470 597,785
─────────── ─────────── ─────────── ─────────── ───────────
GROSS MARGIN 4,080,021 0 0 150,693 3,929,328

FIXED COSTS:
ADMINISTRAT O/H 206,655 0 0 100,000 106,655
ADVERTISING 2,000,000 0 0 1,000,000 1,000,000
PROMOTION 1,000,000 0 0 500,000 500,000
SALES SALARIES 637,500 0 0 375,000 262,500
SALES O/H 740,747 0 0 378,617 362,130
TOTAL FIXED COSTS 4,584,902 0 0 2,353,617 2,231,285
─────────── ─────────── ─────────── ─────────── ───────────
OPERATING INCOME -504,881 0 0 -2,202,924 1,698,043

═════════════════════════════════════════════════════════════════════════════
MEDIA CONTENT & MIX 1 & 55555 1 & 55555 13 & 55999 13 & 55999
PROMOTIONAL TYPE 10 10 10 10

SALES FORCE:
SIZE 0 0 50 70
TIME ALLOCATION (%s) 33 0 100 50
EFFORT .00 .00 50.00 35.00
SALARY + COMMISSION 2,500 + 1 2,500 + 1 2,500 + 1 2,500 + 1

SALES VOLUME FORECAST (Units) 0 0 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 PRODUCT OPERATING STATEMENT, PRODUCT 1-3, QUARTER 8 PAGE 6
*****************************************************************************

REGION 5
(PACIFIC )
───────────

ACTIVE PRODUCT? NO
SALES (Units) 0
UNFILLED ORDERS 0

PRICE 650
DEALER REBATES 0

REVENUE 0
PRODUCT COSTS 0
REBATES OFFERED 0
SALES COMMISSIONS 0
TRANSPORTATION 0
DUTIES & TARIFFS 0
───────────
GROSS MARGIN 0

FIXED COSTS:
ADMINISTRAT O/H 0
ADVERTISING 0
PROMOTION 0
SALES SALARIES 0
SALES O/H 0
TOTAL FIXED COSTS 0
───────────
OPERATING INCOME 0

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

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

SALES VOLUME FORECAST (Units) 0

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 8 PAGE 7
*****************************************************************************

ALL PRODUCT PRODUCT PRODUCT

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

SALES (Units) 51,353 15,000 25,251 11,102

UNFILLED ORDERS 2,824 2,824 0 0

PRICE 808 650 850 930

DEALER REBATES 7 0 10 10

REVENUE 41,538,210 9,750,000 21,463,350 10,324,860

PRODUCT COSTS 28,488,313 9,599,891 13,835,693 5,052,729
REBATES OFFERED 363,530 0 252,510 111,020
SALES COMMISSIONS 415,380 97,500 214,633 103,247
TRANSPORTATION 1,794,875 495,000 934,287 365,588
DUTIES & TARIFFS 2,914,321 584,999 1,717,067 612,255
─────────── ─────────── ─────────── ───────────
GROSS MARGIN 7,561,791 -1,027,390 4,509,160 4,080,021

FIXED COSTS:
ADMINISTRAT O/H 463,094 115,843 140,596 206,655
ADVERTISING 3,500,000 500,000 1,000,000 2,000,000
CONSULTING FEES 0
CORPORATE O/H 750,000
DEPRECIATION 3,037,522
DISPOSAL SALES 95,733 95,733 0 0
EMERG PREMIUMS 0 0 0 0
INTRODUCTIONS 400,000 0 400,000 0
INVENTORY CHARG 1,649,049 0 1,023,972 625,077
MARKET RESEARCH 758,000
PROD ORDER COST 300,000 100,000 100,000 100,000
PROMOTION 1,750,000 250,000 500,000 1,000,000
REFORMULATIONS 2,500,000 2,500,000 0 0
RESEARCH & DEV 750,000 250,000 250,000 250,000
SALES EXPENSES 850,000
SALES SALARIES 1,275,000 262,500 375,000 637,500
SALES O/H 1,690,380 360,000 589,633 740,747
TOTAL FIXED COSTS 19,768,778 4,434,076 4,379,201 5,559,979
─────────── ─────────── ─────────── ───────────
OPERATING INCOME -12,206,987 -5,461,466 129,959 -1,479,958
─────────── ─────────── ─────────── ───────────
NON-OPERAT INCOME 473,599
LESS: TAXES -5,866,694
═══════════
NET INCOME -5,866,694
═══════════
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
CUMULATIVE DIVISIONAL OPERATING STATEMENT, FIRM 1, QUARTER 8 PAGE 8
*****************************************************************************

ALL PRODUCT PRODUCT PRODUCT

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

SALES (Units) 301,446 74,452 197,888 29,106

UNFILLED ORDERS 4,111 2,824 1,287 0

PRICE 835 650 893 921

DEALER REBATES 7 1 10 10

REVENUE 251,979,510 48,393,800 176,767,450 26,818,260

PRODUCT COSTS 125,815,038 26,846,910 85,086,555 13,881,573
REBATES OFFERED 2,390,730 120,790 1,978,880 291,060
SALES COMMISSIONS 2,519,789 483,936 1,767,674 268,179
TRANSPORTATION 7,829,612 2,307,151 4,568,139 954,322
DUTIES & TARIFFS 8,910,986 2,491,301 4,835,236 1,584,449
─────────── ─────────── ─────────── ───────────
GROSS MARGIN 104,513,355 16,143,712 78,530,966 9,838,677

FIXED COSTS:
ADMINISTRAT O/H 2,830,830 988,696 938,610 903,524
ADVERTISING 19,600,000 6,000,000 6,600,000 7,000,000
CONSULTING FEES 0
CORPORATE O/H 3,000,000
DEPRECIATION 6,862,520
DISPOSAL SALES 95,733 95,733 0 0
EMERG PREMIUMS 0 0 0 0
INTRODUCTIONS 2,800,000 0 1,200,000 1,600,000
INVENTORY CHARG 8,674,309 834,190 6,217,322 1,622,797
MARKET RESEARCH 2,752,000
PROD ORDER COST 700,000 200,000 200,000 300,000
PROMOTION 10,250,000 3,250,000 3,500,000 3,500,000
REFORMULATIONS 5,000,000 2,500,000 0 2,500,000
RESEARCH & DEV 3,000,000 1,000,000 1,000,000 1,000,000
SALES EXPENSES 975,000
SALES SALARIES 7,050,000 1,905,000 2,895,000 2,250,000
SALES O/H 9,569,789 2,388,936 4,662,674 2,518,179
TOTAL FIXED COSTS 83,160,181 19,162,555 27,213,606 23,194,500
─────────── ─────────── ─────────── ───────────
OPERATING INCOME 21,353,174 -3,018,843 51,317,360 -13,355,823
─────────── ─────────── ─────────── ───────────
NON-OPERAT INCOME -10,496,237
LESS: TAXES 5,428,469
═══════════
NET INCOME 5,428,468
═══════════
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
DIVISIONAL BALANCE SHEET, FIRM 1, QUARTER 8 PAGE 9
*****************************************************************************

ASSETS
──────
CASH 2,076,910
MARKETABLE SECURITIES 0
FINISHED GOODS INVENTORY:
PRODUCT 1-1 ( 0 Units) [$ .00 Per Unit] 0
PRODUCT 1-2 ( 74,751 Units) [$ 547.93 Per Unit] 40,958,066
PRODUCT 1-3 ( 30,894 Units) [$ 455.12 Per Unit] 14,060,446
PLANT {located in Region 1 (LATIN AM)}:
CURRENT PLANT [CAPACITY = 114,750] 86,063,136
PLANT ON ORDER FOR 1 QUARTER HENCE [CAPACITY = 0] 0
TOTAL ASSETS 143,158,558

LIABILITIES AND EQUITY

──────────────────────
LOANS 32,028,814
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) 5,428,468
TOTAL LIABILITIES AND EQUITY 143,158,558

*****************************************************************************
FINISHED GOODS INVENTORY TRANSACTIONS, FIRM 1, QUARTER 8 PAGE 9
*****************************************************************************

PRODUCT PRODUCT PRODUCT

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

BEGINNING INVENTORY 0 2 21,996

+ PRODUCTION 15,000 100,000 20,000
+ EMERGENCY PRODUCTION 0 0 0
= AVAILABLE FOR SALE 15,000 100,002 41,996
- SALES
REGION 1 (LATIN AM) 0 0 0
REGION 2 (U.S. ) 0 0 0
REGION 3 (U.K. ) 0 0 -389
REGION 4 (EUROPE ) -15,000 0 -10,713
REGION 5 (PACIFIC ) 0 -25,251 0
= ENDING INVENTORY 0 74,751 30,894
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
CASH FLOW ANALYSIS REPORT, FIRM 1, QUARTER 8 PAGE 10
*****************************************************************************

STARTING "CASH" BALANCE (FINAL "CASH" BALANCE, QUARTER 7) 7,176,133

+ "MARKETABLE SECURITIES" (CONVERTED TO "CASH" IN QUARTER 8) 21,048,881
- "LOANS" (LIQUIDATED DURING QUARTER 8) 0
+ "FINISHED GOODS INVENTORY" INVESTMENT CHANGES
PRODUCT 1-1 (From 382,933 To 0) 382,933
PRODUCT 1-2 (From 825 To 40,958,066) -40,957,241
PRODUCT 1-3 (From 10,942,667 To 14,060,446) -3,117,779
+ "PLANT" INVESTMENT CHANGE (From 77,444,999 To 86,063,136) -8,618,137
+ "NET INCOME" -5,866,694
= INITIAL END-OF-QUARTER "CASH" BALANCE -29,951,904
- "DIVIDENDS" (PAID AT END OF QUARTER 8) 0
= ACTUAL "CASH" BALANCE (END OF QUARTER 8) -29,951,904
- OPERATING "CASH" EXCESS (TO "MARKETABLE SECURITIES") 0
+ OPERATING "CASH" DEFICIT (FROM "LOANS") 32,028,814
= FINAL "CASH" BALANCE (END OF QUARTER 8) 2,076,910

*** 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 8 PAGE 10
*****************************************************************************

MARKET SHARES (%)

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

CURRENT QUARTER 41,538,210 -5,866,694 -22.2 8.61 6.46

PREVIOUS QUARTER 89,701,670 10,737,605 40.6 19.71 15.39
CHANGE RATE -53.7% -154.6% -154.6% -56.3% -58.0%
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
DETAILED VARIABLE COST CALCULATIONS, FIRM 1, QUARTER 8 PAGE 11
*****************************************************************************

PRODUCT PRODUCT PRODUCT

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

RAW MATERIAL #1 [SYNTECH] 24.00 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] 9.60 15.30 13.20
RAW MATERIAL #5 [FRALANGE] .75 .75 .75
RAW MATERIAL (Experience Curve Adjust.) .00 -51.53 .00
LABOR (Base) 30.00 30.00 30.00
LABOR (Smoothing Adjustment) 30.00 30.00 .00
LABOR (Experience Curve Adjustment) .00 -16.62 .00
PRODUCTION (Base) 60.00 60.00 60.00
PRODUCTION (Smoothing Adjustment) 60.00 60.00 .00
PRODUCTION (Experience Curve Adjustment) .00 -33.23 .00
PACKAGING 10.00 10.00 10.00
VARIABLE DEPRECIATION 90.00 90.00 90.00

SUB-TOTAL VARIABLE COSTS 462.85 396.27 295.45

COMPATIBILITY (Cost Premium Impact) 74.06 63.40 47.27

WARRANTY (Cost Premium Impact) 103.09 88.26 65.80

TOTAL VARIABLE COSTS 639.99 547.93 408.53

*****************************************************************************
PRODUCT COST ANALYSIS ESTIMATES, FIRM 1, QUARTER 9 PAGE 11
*****************************************************************************
ESTIMATES OF NEXT QUARTER
EXPERIENCE CURVE ADJUSTED
VARIABLE (Per Unit) COSTS MARGIN ANALYSIS
──────────────────────────────── ══════════════════════════
RAW PDCOST PROD
MATERI +PKCST +LABOR TOTAL PRICE COST MARGIN
────── ────── ────── ──────── ──────── ──────── ────────

PRODUCT 1-1 182.85 100.00 90.00 515.55 650.00 515.55 134.45

PRODUCT 1-2 147.59 100.00 56.47 420.42 850.00 420.42 429.58
PRODUCT 1-3 105.45 100.00 90.00 408.53 930.00 408.53 521.47

*** 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 8 PAGE 12
*****************************************************************************

MARKET SALES ACTUAL UNFILLED ACTUAL + ACCURACY

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

1-1 4 15,000 15,000 2,824 17,824 84.16

1-2 5 15,000 25,251 0 25,251 59.40
1-3 3 10,000 389 0 389 n/a
1-3 4 10,000 10,713 0 10,713 93.34
AVERAGE (Current Quarter) 78.97

ON 13 SALES VOLUME FORECASTS IN THE CURRENT YEAR:

CUMULATIVE (Total) FORECASTING SCORE POINTS = 769.16
AVERAGE FORECASTING SCORE (Per Forecast) = 59.17

*** 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 8 PAGE 13
*****************************************************************************

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

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

11 CUSTOMER BRAND AWARENESS 21,000 1 21,000
17 BRAND QUALITY RATINGS 15,000 1 15,000
18 PATENT SEARCH 1,000 1 1,000
19 COMPETITIVE INFORMATION - BALANCE SHEETS 20,000 4 80,000
21 BRAND PERCEPTUAL RATINGS 50,000 1 50,000
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 12,000 1 12,000
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 71,500 71,500
47 SELF-REPORTED ATTRIBUTE PREFERENCES 5,000 4 20,000
48 BRAND SATISFACTION RATINGS 20,000 1 20,000
55 INFORMATION SYSTEMS COSTS {PAGE COUNTS} 1,000 48 48,000

TOTAL 758,000

*** NOTE ***

This marketing research billing report is based on marketing research pre-
ordered for quarter 7 and billed in connection with quarter 8. Marketing
research study premium rates, in connection with syndicated and custom
marketing research, are based on quarter 7.
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
FINANCIAL AND OPERATING STATEMENT MESSAGES, FIRM 1, QUARTER 8 PAGE 14
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EMERGENCY PRODUCTION ACTIVITY

No products have emergency production this quarter.

INVENTORY LEVELS
Product 1-2 inventory is 74,751 units, which represents 3.0 quarters
of sales, at the current sales volume levels for this product.
Product 1-3 inventory is 30,894 units, which represents 2.8 quarters
of sales, at the current sales volume levels for this product.

PRODUCT FORMULATION STATUS

Product 1-1 has formulation 32/30/30/32/ 5/5/5 and patent zone of 7.
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 15,000 units.
Product 1-2 has cumulative production experience of 300,000 units.
Product 1-3 has cumulative production experience of 60,000 units.

SALES FORECASTING ACCURACY SCORES

All sales forecasting accuracy scores are between 50.0% and 94.9%.

REGIONAL GROSS MARGINS

Product 1-1 in region 4 only has a contribution margin of -10.5%.
Product 1-2 in region 5 only has a contribution margin of 21.0%.

SPECIAL NOTES, REMINDERS, AND WARNING MESSAGES

Product 1-1, area 4, has unfilled orders of 2,824 units:
With total potential sales volume of 15,000 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 8 PAGE 15
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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%
Region 5 (PACIFIC ) $ 37.00/unit 8.0%