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

FIRM 1: DWCONSULWARE INDUSTRY P

CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 1-1, QUARTER 10 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 NO

SALES (Units) 17,326 0 0 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 19,058,600 0 0 0 0
PRODUCT COSTS 10,578,141 0 0 0 0
REBATES OFFERED 173,260 0 0 0 0
SALES COMMISSIONS 190,586 0 0 0 0
TRANSPORTATION 641,062 0 0 0 0
DUTIES & TARIFFS 1,524,687 0 0 0 0
─────────── ─────────── ─────────── ─────────── ───────────
GROSS MARGIN 5,950,864 0 0 0 0

FIXED COSTS:
ADMINISTRAT O/H 115,433 0 0 0 0
ADVERTISING 1,000,000 0 0 0 0
PROMOTION 250,000 0 0 0 0
SALES SALARIES 195,000 0 0 0 0
SALES O/H 385,586 0 0 0 0
TOTAL FIXED COSTS 1,946,019 0 0 0 0
─────────── ─────────── ─────────── ─────────── ───────────
OPERATING INCOME 4,004,845 0 0 0 0

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

SALES FORCE:
SIZE 0 120 0 70
TIME ALLOCATION (%s) 33 0 33 0
EFFORT .00 .00 .00 .00
SALARY + COMMISSION 2,500 + 1 2,600 + 1 2,500 + 1 2,600 + 1

SALES VOLUME FORECAST (Units) 0 0 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 10 PAGE 2
*****************************************************************************

REGION 5
(PACIFIC )
───────────

ACTIVE PRODUCT? YES

SALES (Units) 17,326
UNFILLED ORDERS 0

PRICE 1,100
DEALER REBATES 10

REVENUE 19,058,600
PRODUCT COSTS 10,578,141
REBATES OFFERED 173,260
SALES COMMISSIONS 190,586
TRANSPORTATION 641,062
DUTIES & TARIFFS 1,524,687
───────────
GROSS MARGIN 5,950,864

FIXED COSTS:
ADMINISTRAT O/H 115,433
ADVERTISING 1,000,000
PROMOTION 250,000
SALES SALARIES 195,000
SALES O/H 385,586
TOTAL FIXED COSTS 1,946,019
───────────
OPERATING INCOME 4,004,845

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

SALES FORCE:
SIZE 50
TIME ALLOCATION (%s) 50
EFFORT 25.00
SALARY + COMMISSION 2,600 + 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 10 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) 132,934 0 73,440 0 0
UNFILLED ORDERS 0 0 0 0 0

PRICE 900 800 900 800 700

DEALER REBATES 10 10 10 10 10

REVENUE 119,640,600 0 66,096,000 0 0

PRODUCT COSTS 65,323,661 0 36,088,357 0 0
REBATES OFFERED 1,329,340 0 734,400 0 0
SALES COMMISSIONS 1,196,406 0 660,960 0 0
TRANSPORTATION 3,743,518 0 1,542,240 0 0
DUTIES & TARIFFS 5,605,486 0 1,321,919 0 0
─────────── ─────────── ─────────── ─────────── ───────────
GROSS MARGIN 42,442,189 0 25,748,124 0 0

FIXED COSTS:
ADMINISTRAT O/H 253,823 0 136,165 0 0
ADVERTISING 2,000,000 0 1,000,000 0 0
PROMOTION 1,000,000 0 500,000 0 0
SALES SALARIES 1,131,000 0 936,000 0 0
SALES O/H 2,327,406 0 1,596,960 0 0
TOTAL FIXED COSTS 6,712,229 0 4,169,125 0 0
─────────── ─────────── ─────────── ─────────── ───────────
OPERATING INCOME 35,729,960 0 21,578,999 0 0

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

SALES FORCE:
SIZE 0 120 0 70
TIME ALLOCATION (%s) 33 100 33 0
EFFORT .00 120.00 .00 .00
SALARY + COMMISSION 2,500 + 1 2,600 + 1 2,500 + 1 2,600 + 1

SALES VOLUME FORECAST (Units) 0 100,000 0 0

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

PRODUCTION ORDER (Units) 125,000

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 10 PAGE 4
*****************************************************************************

REGION 5
(PACIFIC )
───────────

ACTIVE PRODUCT? YES

SALES (Units) 59,494
UNFILLED ORDERS 0

PRICE 900
DEALER REBATES 10

REVENUE 53,544,600
PRODUCT COSTS 29,235,304
REBATES OFFERED 594,940
SALES COMMISSIONS 535,446
TRANSPORTATION 2,201,278
DUTIES & TARIFFS 4,283,567
───────────
GROSS MARGIN 16,694,065

FIXED COSTS:
ADMINISTRAT O/H 117,658
ADVERTISING 1,000,000
PROMOTION 500,000
SALES SALARIES 195,000
SALES O/H 730,446
TOTAL FIXED COSTS 2,543,104
───────────
OPERATING INCOME 14,150,961

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

SALES FORCE:
SIZE 50
TIME ALLOCATION (%s) 50
EFFORT 25.00
SALARY + COMMISSION 2,600 + 1

SALES VOLUME FORECAST (Units) 70,000

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

PRODUCTION ORDER (Units) 125,000

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 10 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) 11,112 0 0 0 11,112
UNFILLED ORDERS 0 0 0 0 0

PRICE 930 650 650 930 930

DEALER REBATES 10 10 10 10 10

REVENUE 10,334,160 0 0 0 10,334,160

PRODUCT COSTS 4,870,850 0 0 0 4,870,850
REBATES OFFERED 111,120 0 0 0 111,120
SALES COMMISSIONS 103,341 0 0 0 103,341
TRANSPORTATION 366,696 0 0 0 366,696
DUTIES & TARIFFS 620,049 0 0 0 620,049
─────────── ─────────── ─────────── ─────────── ───────────
GROSS MARGIN 4,262,104 0 0 0 4,262,104

FIXED COSTS:
ADMINISTRAT O/H 125,989 0 0 0 125,989
ADVERTISING 1,000,000 0 0 0 1,000,000
PROMOTION 500,000 0 0 0 500,000
SALES SALARIES 546,000 0 0 0 546,000
SALES O/H 649,341 0 0 0 649,341
TOTAL FIXED COSTS 2,821,330 0 0 0 2,821,330
─────────── ─────────── ─────────── ─────────── ───────────
OPERATING INCOME 1,440,774 0 0 0 1,440,774

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

SALES FORCE:
SIZE 0 120 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 2,600 + 1

SALES VOLUME FORECAST (Units) 0 0 0 14,000

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 10 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 2,600 + 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 10 PAGE 7
*****************************************************************************

ALL PRODUCT PRODUCT PRODUCT

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

SALES (Units) 161,372 17,326 132,934 11,112

UNFILLED ORDERS 0 0 0 0

PRICE 923 1,100 900 930

DEALER REBATES 10 10 10 10

REVENUE 149,033,360 19,058,600 119,640,600 10,334,160

PRODUCT COSTS 80,772,652 10,578,141 65,323,661 4,870,850
REBATES OFFERED 1,613,720 173,260 1,329,340 111,120
SALES COMMISSIONS 1,490,333 190,586 1,196,406 103,341
TRANSPORTATION 4,751,276 641,062 3,743,518 366,696
DUTIES & TARIFFS 7,750,222 1,524,687 5,605,486 620,049
─────────── ─────────── ─────────── ───────────
GROSS MARGIN 52,655,157 5,950,864 42,442,189 4,262,104

FIXED COSTS:
ADMINISTRAT O/H 495,245 115,433 253,823 125,989
ADVERTISING 4,000,000 1,000,000 2,000,000 1,000,000
CONSULTING FEES -30,000,000
CORPORATE O/H 750,000
DEPRECIATION 3,937,516
DISPOSAL SALES 0 0 0 0
EMERG PREMIUMS 0 0 0 0
INTRODUCTIONS 0 0 0 0
INVENTORY CHARG 2,142,650 1,413,493 108,880 620,277
MARKET RESEARCH 700,000
PROD ORDER COST 300,000 100,000 100,000 100,000
PROMOTION 1,750,000 250,000 1,000,000 500,000
REFORMULATIONS 0 0 0 0
RESEARCH & DEV 750,000 250,000 250,000 250,000
SALES EXPENSES 52,000
SALES SALARIES 1,872,000 195,000 1,131,000 546,000
SALES O/H 3,362,333 385,586 2,327,406 649,341
TOTAL FIXED COSTS -9,888,256 3,709,512 7,171,109 3,791,607
─────────── ─────────── ─────────── ───────────
OPERATING INCOME 62,543,413 2,241,352 35,271,080 470,497
─────────── ─────────── ─────────── ───────────
NON-OPERAT INCOME 186,795
LESS: TAXES 31,365,104
═══════════
NET INCOME 31,365,104
═══════════
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
CUMULATIVE DIVISIONAL OPERATING STATEMENT, FIRM 1, QUARTER 10 PAGE 8
*****************************************************************************

ALL PRODUCT PRODUCT PRODUCT

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

SALES (Units) 271,419 23,399 224,531 23,489

UNFILLED ORDERS 0 0 0 0

PRICE 919 1,100 900 930

DEALER REBATES 10 10 10 10

REVENUE 249,661,570 25,738,900 202,077,900 21,844,770

PRODUCT COSTS 137,971,890 14,513,103 113,033,174 10,425,613
REBATES OFFERED 2,714,190 233,990 2,245,310 234,890
SALES COMMISSIONS 2,496,615 257,389 2,020,779 218,447
TRANSPORTATION 8,038,611 859,443 6,404,031 775,137
DUTIES & TARIFFS 13,085,248 2,033,039 9,741,524 1,310,685
─────────── ─────────── ─────────── ───────────
GROSS MARGIN 85,355,016 7,841,936 68,633,082 8,879,998

FIXED COSTS:
ADMINISTRAT O/H 1,227,779 415,433 575,232 237,114
ADVERTISING 9,000,000 3,000,000 4,000,000 2,000,000
CONSULTING FEES -75,000,000
CORPORATE O/H 1,500,000
DEPRECIATION 5,625,035
DISPOSAL SALES 0 0 0 0
EMERG PREMIUMS 0 0 0 0
INTRODUCTIONS 1,200,000 800,000 400,000 0
INVENTORY CHARG 4,493,817 1,963,062 1,239,009 1,291,746
MARKET RESEARCH 1,398,000
PROD ORDER COST 600,000 200,000 200,000 200,000
PROMOTION 3,750,000 750,000 2,000,000 1,000,000
REFORMULATIONS 2,500,000 2,500,000 0 0
RESEARCH & DEV 1,500,000 500,000 500,000 500,000
SALES EXPENSES 562,000
SALES SALARIES 3,552,000 585,000 1,896,000 1,071,000
SALES O/H 6,048,615 842,389 3,916,779 1,289,447
TOTAL FIXED COSTS -32,042,754 11,555,884 14,727,020 7,589,307
─────────── ─────────── ─────────── ───────────
OPERATING INCOME 117,397,770 -3,713,948 53,906,062 1,290,691
─────────── ─────────── ─────────── ───────────
NON-OPERAT INCOME -1,094,354
LESS: TAXES 58,151,708
═══════════
NET INCOME 58,151,708
═══════════
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
DIVISIONAL BALANCE SHEET, FIRM 1, QUARTER 10 PAGE 9
*****************************************************************************

ASSETS
──────
CASH 7,451,668
MARKETABLE SECURITIES 0
FINISHED GOODS INVENTORY:
PRODUCT 1-1 ( 56,601 Units) [$ 610.54 Per Unit] 34,556,935
PRODUCT 1-2 ( 220 Units) [$ 491.40 Per Unit] 108,109
PRODUCT 1-3 ( 27,405 Units) [$ 438.34 Per Unit] 12,012,750
PLANT {located in Region 1 (LATIN AM)}:
CURRENT PLANT [CAPACITY = 161,372] 121,029,459
PLANT ON ORDER FOR 1 QUARTER HENCE [CAPACITY = 0] 0
TOTAL ASSETS 175,158,921

LIABILITIES AND EQUITY

──────────────────────
LOANS 5,877,469
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) 58,151,708
TOTAL LIABILITIES AND EQUITY 175,158,921

*****************************************************************************
FINISHED GOODS INVENTORY TRANSACTIONS, FIRM 1, QUARTER 10 PAGE 9
*****************************************************************************

PRODUCT PRODUCT PRODUCT

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

BEGINNING INVENTORY 33,927 8,154 28,517

+ PRODUCTION 40,000 125,000 10,000
+ EMERGENCY PRODUCTION 0 0 0
= AVAILABLE FOR SALE 73,927 133,154 38,517
- SALES
REGION 1 (LATIN AM) 0 0 0
REGION 2 (U.S. ) 0 -73,440 0
REGION 3 (U.K. ) 0 0 0
REGION 4 (EUROPE ) 0 0 -11,112
REGION 5 (PACIFIC ) -17,326 -59,494 0
= ENDING INVENTORY 56,601 220 27,405
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
CASH FLOW ANALYSIS REPORT, FIRM 1, QUARTER 10 PAGE 10
*****************************************************************************

STARTING "CASH" BALANCE (FINAL "CASH" BALANCE, QUARTER 9) 8,050,256

+ "MARKETABLE SECURITIES" (CONVERTED TO "CASH" IN QUARTER 10) 8,302,037
- "LOANS" (LIQUIDATED DURING QUARTER 10) 0
+ "FINISHED GOODS INVENTORY" INVESTMENT CHANGES
PRODUCT 1-1 (From 21,982,795 To 34,556,935) -12,574,140
PRODUCT 1-2 (From 4,247,120 To 108,109) 4,139,011
PRODUCT 1-3 (From 12,798,350 To 12,012,750) 785,600
+ "PLANT" INVESTMENT CHANGE (From 82,535,790 To 121,029,459) -38,493,669
+ "NET INCOME" 31,365,104
= INITIAL END-OF-QUARTER "CASH" BALANCE 1,574,199
- "DIVIDENDS" (PAID AT END OF QUARTER 10) 0
= ACTUAL "CASH" BALANCE (END OF QUARTER 10) 1,574,199
- OPERATING "CASH" EXCESS (TO "MARKETABLE SECURITIES") 0
+ OPERATING "CASH" DEFICIT (FROM "LOANS") 5,877,469
= FINAL "CASH" BALANCE (END OF QUARTER 10) 7,451,668

*** 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 10 PAGE 10
*****************************************************************************

MARKET SHARES (%)

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

CURRENT QUARTER 149,033,360 31,365,104 112.9 25.02 21.30

PREVIOUS QUARTER 100,628,210 26,786,604 96.4 17.20 14.30
CHANGE RATE 48.1% 17.1% 17.1% 45.4% 48.9%
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
DETAILED VARIABLE COST CALCULATIONS, FIRM 1, QUARTER 10 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 -73.47 .00
LABOR (Base) 30.00 30.00 30.00
LABOR (Smoothing Adjustment) .00 30.00 .00
LABOR (Experience Curve Adjustment) .00 -23.40 .00
PRODUCTION (Base) 60.00 60.00 60.00
PRODUCTION (Smoothing Adjustment) .00 60.00 .00
PRODUCTION (Experience Curve Adjustment) .00 -46.79 .00
PACKAGING 10.00 10.00 10.00
VARIABLE DEPRECIATION 90.00 90.00 90.00

SUB-TOTAL VARIABLE COSTS 418.60 354.00 295.45

COMPATIBILITY (Cost Premium Impact) 66.98 56.64 47.27

WARRANTY (Cost Premium Impact) 93.23 78.84 65.80

TOTAL VARIABLE COSTS 578.81 489.48 408.53

*****************************************************************************
PRODUCT COST ANALYSIS ESTIMATES, FIRM 1, QUARTER 11 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 1-1 227.93 100.00 89.68 577.43 1,100.00 577.43 522.57

PRODUCT 1-2 131.13 100.00 49.00 387.33 900.00 387.33 512.67
PRODUCT 1-3 105.14 100.00 89.68 407.65 930.00 407.65 522.35

*** 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 10 PAGE 12
*****************************************************************************

MARKET SALES ACTUAL UNFILLED ACTUAL + ACCURACY

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

1-1 5 20,000 17,326 0 17,326 84.57

1-2 2 100,000 73,440 0 73,440 63.83
1-2 5 70,000 59,494 0 59,494 82.34
1-3 4 14,000 11,112 0 11,112 74.01
AVERAGE (Current Quarter) 76.19

ON 8 SALES VOLUME FORECASTS IN THE CURRENT YEAR:

CUMULATIVE (Total) FORECASTING SCORE POINTS = 472.22
AVERAGE FORECASTING SCORE (Per Forecast) = 59.03

*** 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 10 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 7,500 1 7,500
5 INDUSTRY SALES FORCE COMPENSATION 7,500 1 7,500
7 INDUSTRY R&D 12,000 1 12,000
11 CUSTOMER BRAND AWARENESS 21,000 1 21,000
17 BRAND QUALITY RATINGS 15,000 1 15,000
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 27 270,000
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 76,500 76,500
47 SELF-REPORTED ATTRIBUTE PREFERENCES 5,000 5 25,000
48 BRAND SATISFACTION RATINGS 20,000 1 20,000
55 INFORMATION SYSTEMS COSTS {PAGE COUNTS} 1,000 54 54,000

TOTAL 700,000

*** NOTE ***

This marketing research billing report is based on marketing research pre-
ordered for quarter 9 and billed in connection with quarter 10. Marketing
research study premium rates, in connection with syndicated and custom
marketing research, are based on quarter 9.
*****************************************************************************
FIRM 1: DWCONSULWARE INDUSTRY P
FINANCIAL AND OPERATING STATEMENT MESSAGES, FIRM 1, QUARTER 10 PAGE 14
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EMERGENCY PRODUCTION ACTIVITY

No products have emergency production this quarter.

INVENTORY LEVELS
Product 1-1 inventory is 56,601 units, which represents 3.3 quarters
of sales, at the current sales volume levels for this product.
Product 1-3 inventory is 27,405 units, which represents 2.5 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 4.
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 80,000 units.
Product 1-2 has cumulative production experience of 450,000 units.
Product 1-3 has cumulative production experience of 80,000 units.

SALES FORECASTING ACCURACY SCORES

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

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 10 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%