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

FIRM 1: DWCONSULWARE INDUSTRY P

CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 1-1, QUARTER 9 PAGE 1
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

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

ACTIVE PRODUCT? YES NO YES NO NO

SALES (Units) 6,073 0 395 0 0
UNFILLED ORDERS 0 0 0 0 0

PRICE 1,100 650 1,100 650 650

DEALER REBATES 10 10 10 10 0

REVENUE 6,680,300 0 434,500 0 0

PRODUCT COSTS 3,934,962 0 255,937 0 0
REBATES OFFERED 60,730 0 3,950 0 0
SALES COMMISSIONS 66,803 0 4,345 0 0
TRANSPORTATION 218,381 0 8,295 0 0
DUTIES & TARIFFS 508,352 0 8,689 0 0
─────────── ─────────── ─────────── ─────────── ───────────
GROSS MARGIN 1,891,072 0 153,284 0 0

FIXED COSTS:
ADMINISTRAT O/H 300,000 0 100,000 0 0
ADVERTISING 2,000,000 0 1,000,000 0 0
PROMOTION 500,000 0 250,000 0 0
SALES SALARIES 390,000 0 390,000 0 0
SALES O/H 456,803 0 394,345 0 0
TOTAL FIXED COSTS 3,646,803 0 2,134,345 0 0
─────────── ─────────── ─────────── ─────────── ───────────
OPERATING INCOME -1,755,731 0 -1,981,061 0 0

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

SALES FORCE:
SIZE 0 100 0 70
TIME ALLOCATION (%s) 33 50 33 0
EFFORT .00 50.00 .00 .00
SALARY + COMMISSION 2,500 + 1 2,600 + 1 2,500 + 1 2,500 + 1

SALES VOLUME FORECAST (Units) 0 20,000 0 0

PRODUCT COMPOSITION 51/32/80/32/ 5/5/5

PRODUCTION ORDER (Units) 40,000

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 9 PAGE 2
*****************************************************************************

REGION 5
(PACIFIC )
───────────

ACTIVE PRODUCT? YES

SALES (Units) 5,678
UNFILLED ORDERS 0

PRICE 1,100
DEALER REBATES 10

REVENUE 6,245,800
PRODUCT COSTS 3,679,025
REBATES OFFERED 56,780
SALES COMMISSIONS 62,458
TRANSPORTATION 210,086
DUTIES & TARIFFS 499,663
───────────
GROSS MARGIN 1,737,788

FIXED COSTS:
ADMINISTRAT O/H 200,000
ADVERTISING 1,000,000
PROMOTION 250,000
SALES SALARIES 0
SALES O/H 62,458
TOTAL FIXED COSTS 1,512,458
───────────
OPERATING INCOME 225,330

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

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

SALES VOLUME FORECAST (Units) 20,000

PRODUCT COMPOSITION 51/32/80/32/ 5/5/5

PRODUCTION ORDER (Units) 40,000

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 9 PAGE 3
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

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

ACTIVE PRODUCT? YES NO YES NO NO

SALES (Units) 91,597 0 45,536 0 0
UNFILLED ORDERS 0 0 0 0 0

PRICE 900 800 900 800 700

DEALER REBATES 10 10 10 10 10

REVENUE 82,437,300 0 40,982,400 0 0

PRODUCT COSTS 47,709,513 0 23,718,030 0 0
REBATES OFFERED 915,970 0 455,360 0 0
SALES COMMISSIONS 824,373 0 409,824 0 0
TRANSPORTATION 2,660,513 0 956,256 0 0
DUTIES & TARIFFS 4,136,038 0 819,647 0 0
─────────── ─────────── ─────────── ─────────── ───────────
GROSS MARGIN 26,190,893 0 14,623,283 0 0

FIXED COSTS:
ADMINISTRAT O/H 321,409 0 175,685 0 0
ADVERTISING 2,000,000 0 1,000,000 0 0
PROMOTION 1,000,000 0 500,000 0 0
SALES SALARIES 765,000 0 390,000 0 0
SALES O/H 1,589,373 0 799,824 0 0
TOTAL FIXED COSTS 5,675,782 0 2,865,509 0 0
─────────── ─────────── ─────────── ─────────── ───────────
OPERATING INCOME 20,515,111 0 11,757,774 0 0

═════════════════════════════════════════════════════════════════════════════
MEDIA CONTENT & MIX 1 & 55555 13 & 55999 1 & 55555 1 & 22225
PROMOTIONAL TYPE 10 10 10 14

SALES FORCE:
SIZE 0 100 0 70
TIME ALLOCATION (%s) 33 50 33 0
EFFORT .00 50.00 .00 .00
SALARY + COMMISSION 2,500 + 1 2,600 + 1 2,500 + 1 2,500 + 1

SALES VOLUME FORECAST (Units) 0 80,000 0 0

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

PRODUCTION ORDER (Units) 25,000

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 9 PAGE 4
*****************************************************************************

REGION 5
(PACIFIC )
───────────

ACTIVE PRODUCT? YES

SALES (Units) 46,061
UNFILLED ORDERS 0

PRICE 900
DEALER REBATES 10

REVENUE 41,454,900
PRODUCT COSTS 23,991,483
REBATES OFFERED 460,610
SALES COMMISSIONS 414,549
TRANSPORTATION 1,704,257
DUTIES & TARIFFS 3,316,391
───────────
GROSS MARGIN 11,567,610

FIXED COSTS:
ADMINISTRAT O/H 145,724
ADVERTISING 1,000,000
PROMOTION 500,000
SALES SALARIES 375,000
SALES O/H 789,549
TOTAL FIXED COSTS 2,810,273
───────────
OPERATING INCOME 8,757,337

═════════════════════════════════════════════════════════════════════════════
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) 25,000

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

PRODUCTION ORDER (Units) 25,000

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 9 PAGE 5
*****************************************************************************

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) 12,377 0 0 0 12,377
UNFILLED ORDERS 0 0 0 0 0

PRICE 930 650 650 930 930

DEALER REBATES 10 10 10 10 10

REVENUE 11,510,610 0 0 0 11,510,610

PRODUCT COSTS 5,554,763 0 0 0 5,554,763
REBATES OFFERED 123,770 0 0 0 123,770
SALES COMMISSIONS 115,106 0 0 0 115,106
TRANSPORTATION 408,441 0 0 0 408,441
DUTIES & TARIFFS 690,636 0 0 0 690,636
─────────── ─────────── ─────────── ─────────── ───────────
GROSS MARGIN 4,617,894 0 0 0 4,617,894

FIXED COSTS:
ADMINISTRAT O/H 111,125 0 0 0 111,125
ADVERTISING 1,000,000 0 0 0 1,000,000
PROMOTION 500,000 0 0 0 500,000
SALES SALARIES 525,000 0 0 0 525,000
SALES O/H 640,106 0 0 0 640,106
TOTAL FIXED COSTS 2,776,231 0 0 0 2,776,231
─────────── ─────────── ─────────── ─────────── ───────────
OPERATING INCOME 1,841,663 0 0 0 1,841,663

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

SALES FORCE:
SIZE 0 100 0 70
TIME ALLOCATION (%s) 33 0 33 100
EFFORT .00 .00 .00 70.00
SALARY + COMMISSION 2,500 + 1 2,600 + 1 2,500 + 1 2,500 + 1

SALES VOLUME FORECAST (Units) 0 0 0 11,000

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

PRODUCTION ORDER (Units) 10,000

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 9 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) 10,000

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 9 PAGE 7
*****************************************************************************

ALL PRODUCT PRODUCT PRODUCT

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

SALES (Units) 110,047 6,073 91,597 12,377

UNFILLED ORDERS 0 0 0 0

PRICE 914 1,100 900 930

DEALER REBATES 10 10 10 10

REVENUE 100,628,210 6,680,300 82,437,300 11,510,610

PRODUCT COSTS 57,199,238 3,934,962 47,709,513 5,554,763
REBATES OFFERED 1,100,470 60,730 915,970 123,770
SALES COMMISSIONS 1,006,282 66,803 824,373 115,106
TRANSPORTATION 3,287,335 218,381 2,660,513 408,441
DUTIES & TARIFFS 5,335,026 508,352 4,136,038 690,636
─────────── ─────────── ─────────── ───────────
GROSS MARGIN 32,699,859 1,891,072 26,190,893 4,617,894

FIXED COSTS:
ADMINISTRAT O/H 732,534 300,000 321,409 111,125
ADVERTISING 5,000,000 2,000,000 2,000,000 1,000,000
CONSULTING FEES -45,000,000
CORPORATE O/H 750,000
DEPRECIATION 1,687,519
DISPOSAL SALES 0 0 0 0
EMERG PREMIUMS 0 0 0 0
INTRODUCTIONS 1,200,000 800,000 400,000 0
INVENTORY CHARG 2,351,167 549,569 1,130,129 671,469
MARKET RESEARCH 698,000
PROD ORDER COST 300,000 100,000 100,000 100,000
PROMOTION 2,000,000 500,000 1,000,000 500,000
REFORMULATIONS 2,500,000 2,500,000 0 0
RESEARCH & DEV 750,000 250,000 250,000 250,000
SALES EXPENSES 510,000
SALES SALARIES 1,680,000 390,000 765,000 525,000
SALES O/H 2,686,282 456,803 1,589,373 640,106
TOTAL FIXED COSTS -22,154,498 7,846,372 7,555,911 3,797,700
─────────── ─────────── ─────────── ───────────
OPERATING INCOME 54,854,357 -5,955,300 18,634,982 820,194
─────────── ─────────── ─────────── ───────────
NON-OPERAT INCOME -1,281,149
LESS: TAXES 26,786,604
═══════════
NET INCOME 26,786,604
═══════════
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
CUMULATIVE DIVISIONAL OPERATING STATEMENT, FIRM 1, QUARTER 9 PAGE 8
*****************************************************************************

ALL PRODUCT PRODUCT PRODUCT

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

SALES (Units) 110,047 6,073 91,597 12,377

UNFILLED ORDERS 0 0 0 0

PRICE 914 1,100 900 930

DEALER REBATES 10 10 10 10

REVENUE 100,628,210 6,680,300 82,437,300 11,510,610

PRODUCT COSTS 57,199,238 3,934,962 47,709,513 5,554,763
REBATES OFFERED 1,100,470 60,730 915,970 123,770
SALES COMMISSIONS 1,006,282 66,803 824,373 115,106
TRANSPORTATION 3,287,335 218,381 2,660,513 408,441
DUTIES & TARIFFS 5,335,026 508,352 4,136,038 690,636
─────────── ─────────── ─────────── ───────────
GROSS MARGIN 32,699,859 1,891,072 26,190,893 4,617,894

FIXED COSTS:
ADMINISTRAT O/H 732,534 300,000 321,409 111,125
ADVERTISING 5,000,000 2,000,000 2,000,000 1,000,000
CONSULTING FEES -45,000,000
CORPORATE O/H 750,000
DEPRECIATION 1,687,519
DISPOSAL SALES 0 0 0 0
EMERG PREMIUMS 0 0 0 0
INTRODUCTIONS 1,200,000 800,000 400,000 0
INVENTORY CHARG 2,351,167 549,569 1,130,129 671,469
MARKET RESEARCH 698,000
PROD ORDER COST 300,000 100,000 100,000 100,000
PROMOTION 2,000,000 500,000 1,000,000 500,000
REFORMULATIONS 2,500,000 2,500,000 0 0
RESEARCH & DEV 750,000 250,000 250,000 250,000
SALES EXPENSES 510,000
SALES SALARIES 1,680,000 390,000 765,000 525,000
SALES O/H 2,686,282 456,803 1,589,373 640,106
TOTAL FIXED COSTS -22,154,498 7,846,372 7,555,911 3,797,700
─────────── ─────────── ─────────── ───────────
OPERATING INCOME 54,854,357 -5,955,300 18,634,982 820,194
─────────── ─────────── ─────────── ───────────
NON-OPERAT INCOME -1,281,149
LESS: TAXES 26,786,604
═══════════
NET INCOME 26,786,604
═══════════
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
DIVISIONAL BALANCE SHEET, FIRM 1, QUARTER 9 PAGE 9
*****************************************************************************

ASSETS
──────
CASH 8,050,256
MARKETABLE SECURITIES 8,302,037
FINISHED GOODS INVENTORY:
PRODUCT 1-1 ( 33,927 Units) [$ 647.94 Per Unit] 21,982,795
PRODUCT 1-2 ( 8,154 Units) [$ 520.86 Per Unit] 4,247,120
PRODUCT 1-3 ( 28,517 Units) [$ 448.80 Per Unit] 12,798,350
PLANT {located in Region 1 (LATIN AM)}:
CURRENT PLANT [CAPACITY = 110,047] 82,535,790
PLANT ON ORDER FOR 1 QUARTER HENCE [CAPACITY = 0] 0
TOTAL ASSETS 137,916,348

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) 11,129,744
+ YEAR-TO-DATE EARNINGS (AFTER-TAX INCOME THIS YEAR) 26,786,604
TOTAL LIABILITIES AND EQUITY 137,916,348

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

PRODUCT PRODUCT PRODUCT

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

BEGINNING INVENTORY 0 74,751 30,894

+ PRODUCTION 40,000 25,000 10,000
+ EMERGENCY PRODUCTION 0 0 0
= AVAILABLE FOR SALE 40,000 99,751 40,894
- SALES
REGION 1 (LATIN AM) 0 0 0
REGION 2 (U.S. ) -395 -45,536 0
REGION 3 (U.K. ) 0 0 0
REGION 4 (EUROPE ) 0 0 -12,377
REGION 5 (PACIFIC ) -5,678 -46,061 0
= ENDING INVENTORY 33,927 8,154 28,517
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
CASH FLOW ANALYSIS REPORT, FIRM 1, QUARTER 9 PAGE 10
*****************************************************************************

STARTING "CASH" BALANCE (FINAL "CASH" BALANCE, QUARTER 8) 2,076,910

+ "MARKETABLE SECURITIES" (CONVERTED TO "CASH" IN QUARTER 9) 0
- "LOANS" (LIQUIDATED DURING QUARTER 9) -32,028,814
+ "FINISHED GOODS INVENTORY" INVESTMENT CHANGES
PRODUCT 1-1 (From 0 To 21,982,795) -21,982,795
PRODUCT 1-2 (From 40,958,066 To 4,247,120) 36,710,946
PRODUCT 1-3 (From 14,060,446 To 12,798,350) 1,262,096
+ "PLANT" INVESTMENT CHANGE (From 86,063,136 To 82,535,790) 3,527,346
+ "NET INCOME" 26,786,604
= INITIAL END-OF-QUARTER "CASH" BALANCE 16,352,293
- "DIVIDENDS" (PAID AT END OF QUARTER 9) 0
= ACTUAL "CASH" BALANCE (END OF QUARTER 9) 16,352,293
- OPERATING "CASH" EXCESS (TO "MARKETABLE SECURITIES") -8,302,037
+ OPERATING "CASH" DEFICIT (FROM "LOANS") 0
= FINAL "CASH" BALANCE (END OF QUARTER 9) 8,050,256

*** 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 9 PAGE 10
*****************************************************************************

MARKET SHARES (%)

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

CURRENT QUARTER 100,628,210 26,786,604 96.4 17.20 14.30

PREVIOUS QUARTER 41,538,210 -5,866,694 -22.2 8.61 6.46
CHANGE RATE 142.3% -556.6% -534.3% 99.9% 121.4%
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
DETAILED VARIABLE COST CALCULATIONS, FIRM 1, QUARTER 9 PAGE 11
*****************************************************************************

PRODUCT PRODUCT PRODUCT

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

RAW MATERIAL #1 [SYNTECH] 38.25 38.25 33.00

RAW MATERIAL #2 [PLUMBO] 144.00 135.00 49.50
RAW MATERIAL #3 [GLOMP] 36.00 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 -70.06 .00
LABOR (Base) 30.00 30.00 30.00
LABOR (Smoothing Adjustment) 25.00 11.25 7.50
LABOR (Experience Curve Adjustment) .00 -15.37 .00
PRODUCTION (Base) 60.00 60.00 60.00
PRODUCTION (Smoothing Adjustment) 25.00 11.25 7.50
PRODUCTION (Experience Curve Adjustment) .00 -26.55 .00
PACKAGING 10.00 10.00 10.00
VARIABLE DEPRECIATION 90.00 90.00 90.00

SUB-TOTAL VARIABLE COSTS 468.60 318.17 310.45

COMPATIBILITY (Cost Premium Impact) 74.98 50.91 49.67

WARRANTY (Cost Premium Impact) 104.37 70.86 69.14

TOTAL VARIABLE COSTS 647.94 439.94 429.27

*****************************************************************************
PRODUCT COST ANALYSIS ESTIMATES, FIRM 1, QUARTER 10 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 1-1 228.60 100.00 90.00 578.81 1,100.00 578.81 521.19

PRODUCT 1-2 144.18 100.00 54.91 413.56 900.00 413.56 486.44
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 9 PAGE 12
*****************************************************************************

MARKET SALES ACTUAL UNFILLED ACTUAL + ACCURACY

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

1-1 2 20,000 395 0 395 n/a

1-1 5 20,000 5,678 0 5,678 .00
1-2 2 80,000 45,536 0 45,536 24.31
1-2 5 25,000 46,061 0 46,061 54.28
1-3 4 11,000 12,377 0 12,377 88.87
AVERAGE (Current Quarter) 41.87

ON 4 SALES VOLUME FORECASTS IN THE CURRENT YEAR:

CUMULATIVE (Total) FORECASTING SCORE POINTS = 167.47
AVERAGE FORECASTING SCORE (Per Forecast) = 41.87

*** 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 9 PAGE 13
*****************************************************************************

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

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

3 INDUSTRY SALES FORCE SIZE 2,500 1 2,500
5 INDUSTRY SALES FORCE COMPENSATION 2,500 1 2,500
7 INDUSTRY R&D 4,000 1 4,000
11 CUSTOMER BRAND AWARENESS 7,000 1 7,000
17 BRAND QUALITY RATINGS 5,000 1 5,000
18 PATENT SEARCH 1,000 1 1,000
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 53,500 53,500
47 SELF-REPORTED ATTRIBUTE PREFERENCES 5,000 5 25,000
48 BRAND SATISFACTION RATINGS 10,000 1 10,000
55 INFORMATION SYSTEMS COSTS {PAGE COUNTS} 1,000 59 59,000

TOTAL 698,000

*** NOTE ***

This marketing research billing report is based on marketing research pre-
ordered for quarter 8 and billed in connection with quarter 9. Marketing
research study premium rates, in connection with syndicated and custom
marketing research, are based on quarter 8.
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
FINANCIAL AND OPERATING STATEMENT MESSAGES, FIRM 1, QUARTER 9 PAGE 14
*****************************************************************************

EMERGENCY PRODUCTION ACTIVITY

No products have emergency production this quarter.

INVENTORY LEVELS
Product 1-1 inventory is 33,927 units, which represents 5.6 quarters
of sales, at the current sales volume levels for this product.
Product 1-3 inventory is 28,517 units, which represents 2.3 quarters
of sales, at the current sales volume levels for this product.

PRODUCT FORMULATION STATUS

Product 1-1 has formulation 51/32/80/32/ 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 40,000 units.
Product 1-2 has cumulative production experience of 325,000 units.
Product 1-3 has cumulative production experience of 70,000 units.

SALES FORECASTING ACCURACY SCORES

Product 1-1, region 5, sales forecasting accuracy is very poor [ .00].
Product 1-2, region 2, sales forecasting accuracy is very poor [ 24.31].

REGIONAL GROSS MARGINS

All products in all regions have contribution margins greater than 25%.
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
SPECIAL BRANDMAPS NOTICES, FIRM 1, QUARTER 9 PAGE 15
*****************************************************************************

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%