Develop forecasted Profit and Loss pro-forma statements for Clean Edge under Niche and Mainstream Scenarios for the first two years. Use Exhibit A in the next page as a guide. Exhibit A. Profit and Loss Forecasts for Clean Edge Under Niche and Mainstream Scenarios ($ in Millions) Niche Year 1 Mainstream Year 1 Year 2 Year 2 1 Unit sales - Razors 2 Dollar sales - Razors 3 Unit sales - Cartridges 4 Dollar sales - Cartridges 5 Total dollar sales 6 Production costs Razors 7 Production costs Cartridges 8 Capacity costs 9 Advertising and Promotion 10 Total costs 11 Operating Profit 12 Profits as % of sales 13 Cost of cannibalization - Razors 14 Cost of cannibalization - Cartridges 15 Profit after cannibalization (a) Cannibalization cost =% cannibalization from Avail and Pro * unit sales * contribution per unit Exhibit 7 Financial Forecasts: Alternative Positioning Scenarios for Clean Edge Planned capacity Razor unit volume (millions of units) Year 1 Year 2 Niche Positioning Mainstream Positioning 1.0 3.3 1.5 4.0 Planned capacity Cartridge unit volume (millions of units) 4.0 10.0 9.9 21.9 Year 1 Year 2 Year 1 Year 2 Capacity costs ($ in millions) $ 0.61 $ 0.87 $ 1.71 $ 2.45 Razor: Production per unit cost Razor: Manufacturer price Razor: Suggested price Cartridge: Average Production unit cost Cartridge: Average Manufacturer price Cartridge: Average Suggested price $ 5.00 $ 9.09 $ 12.99 $ 2.43 $ 7.35 $ 10.50 $ 4.74 $ 7.83 $ 11.19 $ 2.24 $ 6.22 $ 8.89 Advertising ($ in millions) Year 1 Year 2 7 7 $ $ 19 17 $ Consumer promotions ($ in millions) Year 1 Year 2 6 6 $ $ 17 14 $ Trade promotions ($ in millions) Year 1 Year 2 2 3 $ $ 6 8 $ a Cartridge unit assumes average 4-count refill package. Develop forecasted Profit and Loss pro-forma statements for Clean Edge under Niche and Mainstream Scenarios for the first two years. Use Exhibit A in the next page as a guide. Exhibit A. Profit and Loss Forecasts for Clean Edge Under Niche and Mainstream Scenarios ($ in Millions) Niche Year 1 Mainstream Year 1 Year 2 Year 2 1 Unit sales - Razors 2 Dollar sales - Razors 3 Unit sales - Cartridges 4 Dollar sales - Cartridges 5 Total dollar sales 6 Production costs Razors 7 Production costs Cartridges 8 Capacity costs 9 Advertising and Promotion 10 Total costs 11 Operating Profit 12 Profits as % of sales 13 Cost of cannibalization - Razors 14 Cost of cannibalization - Cartridges 15 Profit after cannibalization (a) Cannibalization cost =% cannibalization from Avail and Pro * unit sales * contribution per unit Exhibit 7 Financial Forecasts: Alternative Positioning Scenarios for Clean Edge Planned capacity Razor unit volume (millions of units) Year 1 Year 2 Niche Positioning Mainstream Positioning 1.0 3.3 1.5 4.0 Planned capacity Cartridge unit volume (millions of units) 4.0 10.0 9.9 21.9 Year 1 Year 2 Year 1 Year 2 Capacity costs ($ in millions) $ 0.61 $ 0.87 $ 1.71 $ 2.45 Razor: Production per unit cost Razor: Manufacturer price Razor: Suggested price Cartridge: Average Production unit cost Cartridge: Average Manufacturer price Cartridge: Average Suggested price $ 5.00 $ 9.09 $ 12.99 $ 2.43 $ 7.35 $ 10.50 $ 4.74 $ 7.83 $ 11.19 $ 2.24 $ 6.22 $ 8.89 Advertising ($ in millions) Year 1 Year 2 7 7 $ $ 19 17 $ Consumer promotions ($ in millions) Year 1 Year 2 6 6 $ $ 17 14 $ Trade promotions ($ in millions) Year 1 Year 2 2 3 $ $ 6 8 $ a Cartridge unit assumes average 4-count refill package