Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% in this and in all future rounds. (Refer to the TQM Initiative worksheet in the CompXM Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,290,917. Assuming similar sales next year, the 3.0% increase in demand will provide $4,898,727 of additional revenue. With the overall contribution margin of 34.1%, after direct costs this revenue will add $1,670,466 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year's levels. How long will it take to achieve payback on the initial $2,000,000 TQM investment, rounded to the nearest month?
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Round 0 Dec. 31 2019 Report COMP. X MB INQUIRER Andrews Baldwin Chester Digby Selected Financial Statistics Andrews Baldwin Chester Digby ROS 12.3% 9.2 5.7% B.6% Asset Tumover 132 1.28 0.91 0194 ROA 16.3% 11.8 8.15 8.1% Leverage (Assets/Equity 1.7 1.9 27 2.4 ROE 283 22.4% 13.8 19.2 SO SO 80 SO Emergency Loan Sales $183 290,917 $119.521.454 $131,509,005 $118,899, 130 ERIT 9.405 230 $21.50.617 $21,073,280 $23.774,069 Pronts 520,101,345 $11.052,967 57.459.277 $10.204.711 Cumulative Profit SO 50 $0 SO SOLA Sales 79 10.3% 11.236 0.7% 33,796 Contrib. Margin 34.1 333 38.8% Percent of Sales S Market Share 1254 Digby 22.3% 100 Andrews 30.6 Other SGA Depr Var Costs Profit 75 son Chester 247 Andrews Ch Baldwin 22.4 Markut Share information is provided on Page 7 COMP-XMO INQUIRER Page 1 Annual Report TOP Round 0 Dec. 31 2019 Annual Report Chester C59559 Balance Sheet ASSETS 2019 2018 Common Size Cash $31.900 22% $36,749 $10.809 78% $9,777 Accounts Receivable Inventory $10,003 73% $7,845 Total Current Assets $63.372 36.8% $54,371 Plant & fiquipment $142.000 08.6% $127.100 DEFINITIONS: Common Size: The Cormon size column sniply represents each item as a percentage of of assets for that year, Cash: Your end of year cash position Accounts Recolvable: Reichstag between delivery and payment of your products, inventories. The current value of your inventory across all products. A zero indicates your company locked ouUrmet demand wound of course, tak to your competitors Plant & Equipment: The curent value of your plant. Accum Deprec: The total oculated depreciation from your plant Acets Payable: What the company currently owes suppliers to materials and services Current Dote: The debt the companys obligated to pay during the next year of operations. It includes emergency on used to keep your company vend you run out of cash during the year Long Term Debt: The company's long term debt is in the form of bonds, and thus represents the total value of your bonds Common Stock: The Amount of capital invested by shareholders in the company, Retained Earnings: The profits that the company chose to keep instead of paying to Shareholders as dividends Accumulated Depreciation (551,265) 35.4% (541,738) Total Fixed Assets 301.835 63.2W $5,362 Total assets $145,007 100W $139,733 LIABILITIES & OWNERS' EQUITY Accounts Payable $7.283 5% $5.826 Current Dobit 529.231 20.2% $22,161 Long Term Debt $53,845 37.1% $51.904 500.350 623% $79.891 524690 17 $24,690 Total Liabilities Common Stock Ratained Earnings Total Equity Total Liab & Equity $29,950 20.7% $35,152 564,648 377 550 842 $145,007 100% $130,733 Cash Flow Statement Cash Flows from Operating Activities: 2019 2018 Notico (LSS) $10,427 The Cash Flow Statement is what happened in the Cash Account during the year. Cash ection was postive numbers and cash withdrawal negative numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When give showed posts you we forced to seek emergency ludne. For example, les we bed and you find your crying an abundance of es wenty, the report wo show the worse invertory Agregative cash flow too much unexpected inventory could use your wow chale your arting cash widforce you to be for money to keep your company to $7450 $9,827 $8.473 50 SO $1,457 (57) s7Ta Cash Flow Summary Chester (52.758) ($1.002) $14,653 (5562) Deprecation Extraordinary wossewwiders Accounts Payable Inventory Accounts Receivable Netcash from operations Net Cash Flows from investing Activities Plant improvements Cash Flows from Financing Activities Dividends paid Sales of Common Stock Purchase of Common Stock 20 $18,327 ($15.800) ($18.602) JOM ( (S. ($12.653) $0 SO 50 $0 59474 (57533) $7.070 $7.98 $0 Cash from long term del Retirement of long term det Change in current debit) Nel cash from financing wis Nel change in cash position Closing cash position 10 (55.250) (56.180) (63,642) (147) (56.445) $51.00 $30,700 Operations Investment Finance Chy. Cash Annual Report Page 1 Round 0 Dec. 31 2019 Annual Report Baldwin Baldwin C59559 2019 Income Statement Product Name Bell Bit Bolt Buzz Na Na Na Na Total Common Size Sales $33,790 $16,537 $35,490 $33,690 SO $0 $0 so $119.521 100% Variable Costs: Direct Labor $10 426 $3,352 $8,268 $6.999 SO SO $0 so $29,014 24.3% Direct Material $14,542 $6,083 $14.547 $13.678 SO $0 SO $0 $48,851 40.9% Inventory Carry $241 $388 $514 $556 $0 $0 $0 $0 $1,800 1.5% Total Variable $25,210 $9,822 $21233 $0 SO $0 SO $79,695 66.7% $23, 420 $12,000 Contribution Margin $9,589 $6,714 $12,463 $0 $0 SO SO $39.825 33.3% Period Costs: $1.292 $1,213 $1473 $1647 $0 SO SO $5,625 4.7% Depreciation RAD $876 $963 $988 $939 SO $0 $0 $3,765 3.2% Promotions $1,100 $1.100 $1,100 $0 SO $0 $4.400 3.7% $1,100 $400 Sales $400 $1,200 $1,200 50 SO SO 8 8 8 8 8 8 8 $3,200 27% Admin $262 $128 $276 SO $0 90 $928 0.8 Total Penod $3,930 $3,804 $5.037 $5,147 $0 SO SO 15% $17.919 $21,907 Net Margin $4,658 $2,910 $7.024 $7,316 $0 SO SO $0 18.3% Other $318 0.3% EBIT $21.500 18.1% Short Term Interest $1,794 1.5% Long Term Interest $2.443 2 5.15 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory Depreciation Calculated on straight-line 15-year depreciation of plant value. R&D Costs: RAD department expenditures for each product. Admin Administration overhead is estimated at 1.5% of sales Promotions. The promotion budget for each product, Sales: The sales force budget for each product. Other Charges not included in other categories such as Fees, Write Offs, and TOM. The fees include money paid to investment bankers and brokerage is to issue new stocks or bonds plus consulting fees your instructor might assess. Write of indikide the loss you might experience when you sel capacity of liquidate inventory as the result of eliminating a production line of the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory EBIT: Earrings Before Interest and Taxes Short Term Interest: Interest expense based on last year's curent del cluding short term debt, long terms at have become due, and emergency loans, Long Term Interest: Interest paid on outstanding bonds, Taxes Income tax based upon a tax rate, Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT in interests and profit sharing Taxes Profit Sharing $6,074 2220 0.2 Net Profit $11,054 9.2 Variables Margins 50 30 10 0% Bell NA Bolt Bit NA Buzz NA NA Annual Report TOP Round 0 Dec. 31 2019 Annual Report Digby Balance Sheet ASSETS 2019 2018 Common Size 2N Cash $.32.632 $20,342 Accounts Receivable 39.773 78 50.812 Inventory $8.33 SIN 57.920 Total Current Annet SAR 38 SN 543074 0N $97.768 DEFINITIONS ON Sue The One wply represents each item as a percentage of stalne w that you ask you and year cash potion Accounts Receivable: Relleen te lagetween delivery and payment of your pro ventre. The vive yine dets. A rendah your company locked Unlemand would cou, tak to your competitors Past & Fuent The current value of you plan Aceum Depreet The and depreciation bom your pat Arets Payable What the concerty owes whers and services Current Debit: The debt the con obliged to pay the real year of operations chadenergy and to keep your con wolves you can the year Long Tore Debt The companying this is the me beds, and as the tale of you to Common Stock The capital wees by shares in the company totalved Eng. The Drottheory these pago sokun niste Pantat Accumulated Depreciation Total Pised Annet 8124400 (120) 3Y IN (3.00) $77,111 G1N $50.72 TO $125.05 TOON STORAN LIABILITIES & OWNERS COUNTY Account Payable 38. LON Cwreat Debt SSS 341354 20 N 32 Long Terme $5189 $18.631 $31,615 152,635 $143 Total La 372.00 87 N CS 314 11.45 MON 309 MY Range Tauty The AO 423 S40 201 SKINS $13,0 100N $101 KM Cash Flow Statement Cash Flow on Operating Activities: 2010 2018 NAIL 810.20 810 I SNO S 817 The Cash Flow me what the Cat Ayah con poster and can with the Cash tremene gerek Where When she pe you are the wedd you can do the was atve cash flow the show you who you are conduce you to be my your De EN Aye 50 (33) 00 8,44 (1) Cash Flow Summary Digby NOWY AR Nam Cash Flowest Act (1) st SI 15,642) (52) Cash Flow (163) (34) BOSAN 80 BIN (0 Cam How Cha Nach Ne hagin canh Clash (2017) (TURKU 33 HO 100 vesti - C CHAN Annual Report Page 1 TOP Round o Dec. 31 2019 Annual Report Chester 2019 Income Statement Product Name Coll City Cone Cute Na Na Na Na Total Common Size Sales $25,420 $31,746 $34.751 $39,592 $0 $0 50 SO $131,510 100% Variable costs: Direct Labor $5410 $1.002 $9.487 $10,670 SO $0 $32,658 24 8% Direct Material $9,376 $12.509 S14436 $ 16,974 SO SO 50 50 $53,296 40.5% $319 $400 $206 $0 SO $0 $ $1,272 136 Inventory Carty Total Variable Contribution Margin $340 524 263 $18, 105 $27.748 $0 $0 $0 SO $87 126 65 396 $20,010 $11,736 $10,315 $10480 511,844 SO SO SO so $44,384 33.7% Porod Costs: Depreciation $3,167 $1,800 $1,900 $0 $0 SO SO $9,527 72% $2,600 SOSB R&D $979 $936 $ $896 $0 SO $0 so $3.768 2.9% Promotions $1,050 $1.050 $1.000 $0 $0 SO 50 $4,200 32% $1,050 $1,000 Sales S000 $600 $0 $0 SO SO $3,000 23% 5800 $421 Admin 5460 S424 50 SO SO $0 $1,742 1.38 $337 w $ $6,004 Total Period $4,846 $4.971 SO $0 $0 50 $22,237 16.9% $6,416 $5,321 Net Margin 54,311 55.642 56.873 $0 50 SO SO $22,147 16.8N Other 0.4% 5474 $21.073 $ 36.SK EBIT Short Term interest $3.345 2.5% $6,719 6.1% Long Term Interest Taxes Profit Sharing $4.000 Definitions: Sales: Unit sales tumes list price. Direct Labor Labor costs nourred to produce the product that was sold Inventory Carry Cost: the cost to carry unsold goods in Inventory Depreciation Calculated on straight line 16-year depreciation of plant value. R&D Costs: RAD department expenditures for each product Admin: Administration overhead is estimated at 1.7% of sales. Promotions. The promotion budget for each product Sales The Salesforce budget for each product Others Charges not included in other categories such as Fees, Write Offs, and TOM The fees include noney paid to inwestment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess Winte-offs include the loss you might experience when you se capacity of liquidate wwentory as a result of liminating a production line of the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory EBIT. Earnings Before werest and Taxes Short Term Interest: Interest expense based on last year's current del Including short ter debt, long form notes that have become do, and emergency loans Long Term Interest interest paid on outstanding bonds. Taxes: Income fax based upon a tax rate. Profit Sharing: Profits shared with employees under the labor contract Net Profit: EBIT inimest, taxes and profit sharing 3.15 $152 0.15 Net Profit 57.439 5.7 Variables Margins 3016 40 3094 20% 10 ON Cell NA City NA Cone Cute NA NA Round 0 Dec. 31 2019 Annual Report Andrews C59559 2019 Income Statement Product Name Ace Awe Art Ant Na Na Na Na Total Common Size Sales $36,835 $35,573 $58,475 $32,408 $0 $0 SO SO $163.291 100% Variable Costs Direct Labor $9.424 $7,613 $10 BOS $16.283 SO SO SO SO $44,125 27% Direct Material $14,346 $12,553 $11,537 $21,869 SO SO $O $60,305 36.9% Inventory Carry $826 $686 $1491 $135 8 8 8 8 8 SO $0 $0 SO $3,138 1.9% Total Variable $24,506 $20,852 $23.832 $38 288 SO SO so $107,568 65.9% Contribution Margin $12,239 $11,556 $11,741 $20,187 $0 SO so $55,723 34.1% Period Costs: Depreciation $1.068 $1,047 $2 200 $2,080 SO SO I SO SO $6.455 4% R&D $809 $881 $0 $0 SO SO SO SO $1.750 1.1% Promotions $1,200 $1,200 $1200 $1.200 SO SO $0 SO $4,800 2.9% Sales $1,000 $1,000 $2.000 $1,000 SO SO $0 so $5,000 3.1% 0.8% Admin $200 5255 $280 $450 SO $0 SO $0 Total Period $4426 $4,382 $5,740 $4,740 SO $0 SO SO $1,283 $ $19.288 $36,435 11.8% Net Margin $7.813 ST.173 $6,001 $15,448 SO $0 $0 $0 22.3 3 Other $29 0% EBIT $36.406 22.3 Short Term Interest 0.9% $1,493 $3,357 2.1% Long Term Interest Taxes $11,045 6.8% Definitions: Sales: Unil sales tumes list price Direct Labor: Labor costs incurred to produce the product that was sold Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calolated on straight line 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product Sales: The sales force budget for each product. Other Charges not included in other categones such as Fees, Write Offs, and TOM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write ofts include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory EBIT. Earrings Before Interest and Taxes Short Term Interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35 tax rate. Profit Sharing: Profits shared with employees under the labor contract Net Profit: EBIT minus interest, taxes, and profit sharing $410 0.3% Profit Sharing Net Profit $20,101 12.3 Variables Margins 40% 30% 20% 10% ON Ace NA Awe Art Ant NA NA NA Round Dec. 31 2019 059559 Annual Report Andrews Balance Sheet 2019 2018 ASSETS Common Size 25.5 $31.910 $31,543 Cash 100% $13.445 $13,421 Accounts Recevable 21.23 $14,796 $20,149 Inventory Total Current Assets 57 6N $60.151 $71,113 78.4% $93,304 $90,824 Plant & Equipment Accumulated Depreciation -30% (537.954) (544,409) DEFINITIONS: Common Size: The common se column simply represents each item as a percentage of total assets for that year. Cash: Your end of year cash position Accounts Receivable: Reflects the lag between delivery and payment of your products, Inventories: The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, tal to your competitors. Plant & Equipment. The current value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's long term debt is in the form of bonds, and this represents the total value of your bonds Common Stock: The amount of capital invested by shareholders in the company, Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends 424% $52,415 $88.350 Total Fixed Assets 5123,527 100% $115.500 Total assets LIABILITIES & OWNERS' EQUITY Accounts Payable $8,781 $9,516 7.7% 12 YN 55.725 $15.717 Current Debt $34.742 $27,200 22N Long Term Debt $52,442 42.5 $49,248 Total Liabilities $12,080 9.8% $12443 Common Stock Retained Earnings $50,004 47 8 $53,80S $71,034 57.5% $66.251 Total Equity $123.527 100% $115.500 Total Lab. &0. Equity Cash Flow Statement 2019 2018 Cash Flows from Operating Activities: Net Income (Los) $20.101 $21,787 Depreciation $8.455 $6.220 The Cash Flow Statement examines what happened in the Cash Account during the year. Cash jections appear as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When negative cash flows exceed positives you are forced to seek emergency funding. For example, sales are bad and you find yourself carrying an abundance of excess wwentory, the report would show the increase in ay as afuge negative cash flow. Too much unexpected inventory could cutstrip your ws, exhaust your starting cash and force you to beg for money to keep your company afloat. SO SO Extraordinary gain/losses writeoffs Accounts Payable $735 $2,083 Inventory ($11.353) (54,044) Accounts Receivable $23 ($2.891) Cash Flow Summary Andrews $15,962 $23,158 20 Net cash from operations Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing Activities: (53,520) ($1,820 10 Dividends paid ($13,333) (57.49) $0 $0 Sales of Common Stock Purchase of Common Stock ($1.935) ($541) $0 SO Cash from long term debt Retirement of long term debt (87,513) $0 59,902 (52,070) 10 ($ 10,560) Change in current debt (net) Net cash from financing activities Not change in cash position Closing cash position ($12,809) ($307) $31.543 $ $10.770 $31,010 200 Operations Investment Finance Chg. Cash Annual Report Page 1 Human Resources Summary Andrews Baldwin Chester Digby 804 483 539 308 Needed Complemen Complement 804 483 539 so 1st Shit Complement 525 37 316 200 2nd Shili Complement 279 112 223 138 Overtime 0.0% 0.ON OOK 0.0% 10.0% 10.0% 8.25 60% 140 92 112 54 Tumover Rale New Employees Separated Employees Recruiting Spend Training Hours 0 0 0 0 SO $2.500 $5.000 0 0 40 80 Productivity Index 100.0% 100 ON 1004N 117.6 Recruiting Cost 5140 $92 $300 $124 Separation Cost DO SO SO $0 SO SO $431 5037 Training Cost Total HR Adren Cost 5140 $92 $821 $902 Labor Contract Next Year I Wages 525 53 525.63 $25.63 $2853 Bev 2.600 2.500 2.500 2.500 Prof Shang 2.0 2.0 20 20% Arnul R 5.ON 5.0% 5.0 50 TOM Summary Andrews Baldwin Chester Digby 50 $0 SO $0 SO Process Mgt Budgets Last Year CP Systems Vendor Quality rative Trang Channel Support frystems Con Engineering UNEP Green Program SO SO $$$$$s 50 30 50 50 30 50 30 50 30 50 TOM Budgets Last Year Benchmarking Quay Function Deployment CC Ung Trang GEM TOEM Bustamaties Expedis 50 88888 50 88888 30 30 50 30 so ODON Cumulative impact Material Cost Reduction Labor Cool Reduction Red RAD Tre Reduction de Costa Demand increase 0.00% 0.00% 0.00% O BOX 0.00 0.00% 0.00 OOON 0.00% ODON 0.00% ODON ODOW OOON 0.00% 0.00 000 COMP-XMO INQUIRER Page 11 20 19 15 Arti Cell 14 1 12 Old Gutid cond sem 10 LLAWS Dome TACO 0 2 8 14 16 18 20 10 12 Performance Andrews Baldwin Name Pin Chester SO Revised Name Size Revised Name Ace 10.3 Pfm Pimn 36 Sie 78 11/2010 Revised Bell 0.6 11/12/2019 Cell Awe 60 124 0.8 11/14/2019 14.0 12/11/2019 Bit 113 10 12/13/2019 City Art 2 AO 13.8 15 4/13/2017 12/19/2010 Bolt 102 7.8 12/22/2019 Cone Ant YO 8.8 110 124 12/2016 12/3/2019 Bu 122 08 12/6/2019 Cute 0.3 115 11/19 2010 Digby Name Pinn Size Revised W212020 Deal 52 148 Dino 7.8 11/30/2010 Dome 0.7 12/22/2010 Dug 17 10.3 11/11/2019 COMP-XME INQUIRER Page 10 Units Sold vs Demand Market Share Thi Core te Andrews Baldw Chester Dagb Industry Unit Sales Total Unit Demand Thrift Core Nane ellte Actual Market Share in Units Potential Marke Share Thrift 5,101 Thrin Coro 6.676 35 ON Nano Industry Unt Sales % of Marke Elite 5,101 27.0 3.641 19,394 18.4% 100 27.0% Ace 19.3 17.3% 18.45 14.01 Awe 17.3% 18.44 144 1701 Ant 4.4% 17.6N HO 7. 28 17.94 26.7 2.1 20.8 GOS 6.14 0.9 23 Boll Bu BN 11 39.5 17.AN 415 4.0% 17.9% 124 6.19 232 23 44.14 27 BN 231 4.0 22.01 27.2% 14N 14.7 1.49 DON sa ox 14,81 60 7.5% Con Cute 40N WAIN 1449 0.9 10 Total 204 10.15 Deal 20 20 N Dino 0. 11.08 12.79 an Dom ON Di 30 19.2 ON Tot 31 33 COMP-XM INQUIRER Elite Statisitos Accessibility Elite 3.470 3,476 Total Industry Unit Demand Actual Industry Unit Sales Segment of Total Industry Next Year's Segment Growth Rate Andrews 18.45 16N Baldwin Elite Customer Buying Criteria Expectations Importance 1. Age Ideal Age 0.0 345 Chester 2. Price $30.00 - 4200 24% 3 Ideal Position Pimn 11.7 Sure 103 22 4. Reliability MTBF 20000-26000 20% Digby ON 20% 40% 601 BOX 1001 Perceptual Map For Elite Actual vs Potential Market Share Elite 20 18 18 40 14 AN 12 19 Do Ace 20 1ON 2 09 U Andrews Bwin Cher Digby 4 14 10 20 to 18 Performance Actual Potential Top Products in Elite Segment Markel Units Sold to Share Seg 10% 011 Revision Date Stock Out Pimn Coord Size Coord List Price MTBF Age Dec 31 Name Promo Budget Cust. Awareness Sales Budget Cust Accessibility Dec. Cust. Survey Ae 124 98 142 00 20000 1.09 $1.200 77% 11/14/2010 12/2010 $ 1 000 20 Du 17 304 122 98 1.00 51.100 10 51,200 IN 10 Dug 10 MO 19/2010 11.7 103 $39.00 25000 $35.00 20000 53 00 25000 1.12 $950 52 $1.300 10 MO 110 104 1.91 51,100 72% 12/12010 12/10/2011 And 200 $ $100 $1.000 76 124 $3200 22000 2.24 SIN 100 102 TA 1.04 TON 12/27/2010 A 2019 51,00 11 $3700 28000 34000 24000 201 103 $1,200 51.100 $1.200 $1.100 $950 BIN ar 1.12 TIN $1000 11 282 90 5000 25000 2.10 $400 Do 54 182 107 11/12/2019 12/22/2010 11/10/2010 12/2010 MIN 11 3 85 3100 1000 11 12000 20000 110 2700 000 $1.no BO TON Cone 2 54 1.21 51.no 100 TON Elite Statisitos Accessibility Elite 3.470 3,476 Total Industry Unit Demand Actual Industry Unit Sales Segment of Total Industry Next Year's Segment Growth Rate Andrews 18.45 16N Baldwin Elite Customer Buying Criteria Expectations Importance 1. Age Ideal Age 0.0 345 Chester 2. Price $30.00 - 4200 24% 3 Ideal Position Pimn 11.7 Sure 103 22 4. Reliability MTBF 20000-26000 20% Digby ON 20% 40% 601 BOX 1001 Perceptual Map For Elite Actual vs Potential Market Share Elite 20 18 18 40 14 AN 12 19 Do Ace 20 1ON 2 09 U Andrews Bwin Cher Digby 4 14 10 20 to 18 Performance Actual Potential Top Products in Elite Segment Markel Units Sold to Share Seg 10% 011 Revision Date Stock Out Pimn Coord Size Coord List Price MTBF Age Dec 31 Name Promo Budget Cust. Awareness Sales Budget Cust Accessibility Dec. Cust. Survey Ae 124 98 142 00 20000 1.09 $1.200 77% 11/14/2010 12/2010 $ 1 000 20 Du 17 304 122 98 1.00 51.100 10 51,200 IN 10 Dug 10 MO 19/2010 11.7 103 $39.00 25000 $35.00 20000 53 00 25000 1.12 $950 52 $1.300 10 MO 110 104 1.91 51,100 72% 12/12010 12/10/2011 And 200 $ $100 $1.000 76 124 $3200 22000 2.24 SIN 100 102 TA 1.04 TON 12/27/2010 A 2019 51,00 11 $3700 28000 34000 24000 201 103 $1,200 51.100 $1.200 $1.100 $950 BIN ar 1.12 TIN $1000 11 282 90 5000 25000 2.10 $400 Do 54 182 107 11/12/2019 12/22/2010 11/10/2010 12/2010 MIN 11 3 85 3100 1000 11 12000 20000 110 2700 000 $1.no BO TON Cone 2 54 1.21 51.no 100 TON Round 0 Dec. 31 2019 Report COMP. X MB INQUIRER Andrews Baldwin Chester Digby Selected Financial Statistics Andrews Baldwin Chester Digby ROS 12.3% 9.2 5.7% B.6% Asset Tumover 132 1.28 0.91 0194 ROA 16.3% 11.8 8.15 8.1% Leverage (Assets/Equity 1.7 1.9 27 2.4 ROE 283 22.4% 13.8 19.2 SO SO 80 SO Emergency Loan Sales $183 290,917 $119.521.454 $131,509,005 $118,899, 130 ERIT 9.405 230 $21.50.617 $21,073,280 $23.774,069 Pronts 520,101,345 $11.052,967 57.459.277 $10.204.711 Cumulative Profit SO 50 $0 SO SOLA Sales 79 10.3% 11.236 0.7% 33,796 Contrib. Margin 34.1 333 38.8% Percent of Sales S Market Share 1254 Digby 22.3% 100 Andrews 30.6 Other SGA Depr Var Costs Profit 75 son Chester 247 Andrews Ch Baldwin 22.4 Markut Share information is provided on Page 7 COMP-XMO INQUIRER Page 1 Annual Report TOP Round 0 Dec. 31 2019 Annual Report Chester C59559 Balance Sheet ASSETS 2019 2018 Common Size Cash $31.900 22% $36,749 $10.809 78% $9,777 Accounts Receivable Inventory $10,003 73% $7,845 Total Current Assets $63.372 36.8% $54,371 Plant & fiquipment $142.000 08.6% $127.100 DEFINITIONS: Common Size: The Cormon size column sniply represents each item as a percentage of of assets for that year, Cash: Your end of year cash position Accounts Recolvable: Reichstag between delivery and payment of your products, inventories. The current value of your inventory across all products. A zero indicates your company locked ouUrmet demand wound of course, tak to your competitors Plant & Equipment: The curent value of your plant. Accum Deprec: The total oculated depreciation from your plant Acets Payable: What the company currently owes suppliers to materials and services Current Dote: The debt the companys obligated to pay during the next year of operations. It includes emergency on used to keep your company vend you run out of cash during the year Long Term Debt: The company's long term debt is in the form of bonds, and thus represents the total value of your bonds Common Stock: The Amount of capital invested by shareholders in the company, Retained Earnings: The profits that the company chose to keep instead of paying to Shareholders as dividends Accumulated Depreciation (551,265) 35.4% (541,738) Total Fixed Assets 301.835 63.2W $5,362 Total assets $145,007 100W $139,733 LIABILITIES & OWNERS' EQUITY Accounts Payable $7.283 5% $5.826 Current Dobit 529.231 20.2% $22,161 Long Term Debt $53,845 37.1% $51.904 500.350 623% $79.891 524690 17 $24,690 Total Liabilities Common Stock Ratained Earnings Total Equity Total Liab & Equity $29,950 20.7% $35,152 564,648 377 550 842 $145,007 100% $130,733 Cash Flow Statement Cash Flows from Operating Activities: 2019 2018 Notico (LSS) $10,427 The Cash Flow Statement is what happened in the Cash Account during the year. Cash ection was postive numbers and cash withdrawal negative numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When give showed posts you we forced to seek emergency ludne. For example, les we bed and you find your crying an abundance of es wenty, the report wo show the worse invertory Agregative cash flow too much unexpected inventory could use your wow chale your arting cash widforce you to be for money to keep your company to $7450 $9,827 $8.473 50 SO $1,457 (57) s7Ta Cash Flow Summary Chester (52.758) ($1.002) $14,653 (5562) Deprecation Extraordinary wossewwiders Accounts Payable Inventory Accounts Receivable Netcash from operations Net Cash Flows from investing Activities Plant improvements Cash Flows from Financing Activities Dividends paid Sales of Common Stock Purchase of Common Stock 20 $18,327 ($15.800) ($18.602) JOM ( (S. ($12.653) $0 SO 50 $0 59474 (57533) $7.070 $7.98 $0 Cash from long term del Retirement of long term det Change in current debit) Nel cash from financing wis Nel change in cash position Closing cash position 10 (55.250) (56.180) (63,642) (147) (56.445) $51.00 $30,700 Operations Investment Finance Chy. Cash Annual Report Page 1 Round 0 Dec. 31 2019 Annual Report Baldwin Baldwin C59559 2019 Income Statement Product Name Bell Bit Bolt Buzz Na Na Na Na Total Common Size Sales $33,790 $16,537 $35,490 $33,690 SO $0 $0 so $119.521 100% Variable Costs: Direct Labor $10 426 $3,352 $8,268 $6.999 SO SO $0 so $29,014 24.3% Direct Material $14,542 $6,083 $14.547 $13.678 SO $0 SO $0 $48,851 40.9% Inventory Carry $241 $388 $514 $556 $0 $0 $0 $0 $1,800 1.5% Total Variable $25,210 $9,822 $21233 $0 SO $0 SO $79,695 66.7% $23, 420 $12,000 Contribution Margin $9,589 $6,714 $12,463 $0 $0 SO SO $39.825 33.3% Period Costs: $1.292 $1,213 $1473 $1647 $0 SO SO $5,625 4.7% Depreciation RAD $876 $963 $988 $939 SO $0 $0 $3,765 3.2% Promotions $1,100 $1.100 $1,100 $0 SO $0 $4.400 3.7% $1,100 $400 Sales $400 $1,200 $1,200 50 SO SO 8 8 8 8 8 8 8 $3,200 27% Admin $262 $128 $276 SO $0 90 $928 0.8 Total Penod $3,930 $3,804 $5.037 $5,147 $0 SO SO 15% $17.919 $21,907 Net Margin $4,658 $2,910 $7.024 $7,316 $0 SO SO $0 18.3% Other $318 0.3% EBIT $21.500 18.1% Short Term Interest $1,794 1.5% Long Term Interest $2.443 2 5.15 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory Depreciation Calculated on straight-line 15-year depreciation of plant value. R&D Costs: RAD department expenditures for each product. Admin Administration overhead is estimated at 1.5% of sales Promotions. The promotion budget for each product, Sales: The sales force budget for each product. Other Charges not included in other categories such as Fees, Write Offs, and TOM. The fees include money paid to investment bankers and brokerage is to issue new stocks or bonds plus consulting fees your instructor might assess. Write of indikide the loss you might experience when you sel capacity of liquidate inventory as the result of eliminating a production line of the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory EBIT: Earrings Before Interest and Taxes Short Term Interest: Interest expense based on last year's curent del cluding short term debt, long terms at have become due, and emergency loans, Long Term Interest: Interest paid on outstanding bonds, Taxes Income tax based upon a tax rate, Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT in interests and profit sharing Taxes Profit Sharing $6,074 2220 0.2 Net Profit $11,054 9.2 Variables Margins 50 30 10 0% Bell NA Bolt Bit NA Buzz NA NA Annual Report TOP Round 0 Dec. 31 2019 Annual Report Digby Balance Sheet ASSETS 2019 2018 Common Size 2N Cash $.32.632 $20,342 Accounts Receivable 39.773 78 50.812 Inventory $8.33 SIN 57.920 Total Current Annet SAR 38 SN 543074 0N $97.768 DEFINITIONS ON Sue The One wply represents each item as a percentage of stalne w that you ask you and year cash potion Accounts Receivable: Relleen te lagetween delivery and payment of your pro ventre. The vive yine dets. A rendah your company locked Unlemand would cou, tak to your competitors Past & Fuent The current value of you plan Aceum Depreet The and depreciation bom your pat Arets Payable What the concerty owes whers and services Current Debit: The debt the con obliged to pay the real year of operations chadenergy and to keep your con wolves you can the year Long Tore Debt The companying this is the me beds, and as the tale of you to Common Stock The capital wees by shares in the company totalved Eng. The Drottheory these pago sokun niste Pantat Accumulated Depreciation Total Pised Annet 8124400 (120) 3Y IN (3.00) $77,111 G1N $50.72 TO $125.05 TOON STORAN LIABILITIES & OWNERS COUNTY Account Payable 38. LON Cwreat Debt SSS 341354 20 N 32 Long Terme $5189 $18.631 $31,615 152,635 $143 Total La 372.00 87 N CS 314 11.45 MON 309 MY Range Tauty The AO 423 S40 201 SKINS $13,0 100N $101 KM Cash Flow Statement Cash Flow on Operating Activities: 2010 2018 NAIL 810.20 810 I SNO S 817 The Cash Flow me what the Cat Ayah con poster and can with the Cash tremene gerek Where When she pe you are the wedd you can do the was atve cash flow the show you who you are conduce you to be my your De EN Aye 50 (33) 00 8,44 (1) Cash Flow Summary Digby NOWY AR Nam Cash Flowest Act (1) st SI 15,642) (52) Cash Flow (163) (34) BOSAN 80 BIN (0 Cam How Cha Nach Ne hagin canh Clash (2017) (TURKU 33 HO 100 vesti - C CHAN Annual Report Page 1 TOP Round o Dec. 31 2019 Annual Report Chester 2019 Income Statement Product Name Coll City Cone Cute Na Na Na Na Total Common Size Sales $25,420 $31,746 $34.751 $39,592 $0 $0 50 SO $131,510 100% Variable costs: Direct Labor $5410 $1.002 $9.487 $10,670 SO $0 $32,658 24 8% Direct Material $9,376 $12.509 S14436 $ 16,974 SO SO 50 50 $53,296 40.5% $319 $400 $206 $0 SO $0 $ $1,272 136 Inventory Carty Total Variable Contribution Margin $340 524 263 $18, 105 $27.748 $0 $0 $0 SO $87 126 65 396 $20,010 $11,736 $10,315 $10480 511,844 SO SO SO so $44,384 33.7% Porod Costs: Depreciation $3,167 $1,800 $1,900 $0 $0 SO SO $9,527 72% $2,600 SOSB R&D $979 $936 $ $896 $0 SO $0 so $3.768 2.9% Promotions $1,050 $1.050 $1.000 $0 $0 SO 50 $4,200 32% $1,050 $1,000 Sales S000 $600 $0 $0 SO SO $3,000 23% 5800 $421 Admin 5460 S424 50 SO SO $0 $1,742 1.38 $337 w $ $6,004 Total Period $4,846 $4.971 SO $0 $0 50 $22,237 16.9% $6,416 $5,321 Net Margin 54,311 55.642 56.873 $0 50 SO SO $22,147 16.8N Other 0.4% 5474 $21.073 $ 36.SK EBIT Short Term interest $3.345 2.5% $6,719 6.1% Long Term Interest Taxes Profit Sharing $4.000 Definitions: Sales: Unit sales tumes list price. Direct Labor Labor costs nourred to produce the product that was sold Inventory Carry Cost: the cost to carry unsold goods in Inventory Depreciation Calculated on straight line 16-year depreciation of plant value. R&D Costs: RAD department expenditures for each product Admin: Administration overhead is estimated at 1.7% of sales. Promotions. The promotion budget for each product Sales The Salesforce budget for each product Others Charges not included in other categories such as Fees, Write Offs, and TOM The fees include noney paid to inwestment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess Winte-offs include the loss you might experience when you se capacity of liquidate wwentory as a result of liminating a production line of the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory EBIT. Earnings Before werest and Taxes Short Term Interest: Interest expense based on last year's current del Including short ter debt, long form notes that have become do, and emergency loans Long Term Interest interest paid on outstanding bonds. Taxes: Income fax based upon a tax rate. Profit Sharing: Profits shared with employees under the labor contract Net Profit: EBIT inimest, taxes and profit sharing 3.15 $152 0.15 Net Profit 57.439 5.7 Variables Margins 3016 40 3094 20% 10 ON Cell NA City NA Cone Cute NA NA Round 0 Dec. 31 2019 Annual Report Andrews C59559 2019 Income Statement Product Name Ace Awe Art Ant Na Na Na Na Total Common Size Sales $36,835 $35,573 $58,475 $32,408 $0 $0 SO SO $163.291 100% Variable Costs Direct Labor $9.424 $7,613 $10 BOS $16.283 SO SO SO SO $44,125 27% Direct Material $14,346 $12,553 $11,537 $21,869 SO SO $O $60,305 36.9% Inventory Carry $826 $686 $1491 $135 8 8 8 8 8 SO $0 $0 SO $3,138 1.9% Total Variable $24,506 $20,852 $23.832 $38 288 SO SO so $107,568 65.9% Contribution Margin $12,239 $11,556 $11,741 $20,187 $0 SO so $55,723 34.1% Period Costs: Depreciation $1.068 $1,047 $2 200 $2,080 SO SO I SO SO $6.455 4% R&D $809 $881 $0 $0 SO SO SO SO $1.750 1.1% Promotions $1,200 $1,200 $1200 $1.200 SO SO $0 SO $4,800 2.9% Sales $1,000 $1,000 $2.000 $1,000 SO SO $0 so $5,000 3.1% 0.8% Admin $200 5255 $280 $450 SO $0 SO $0 Total Period $4426 $4,382 $5,740 $4,740 SO $0 SO SO $1,283 $ $19.288 $36,435 11.8% Net Margin $7.813 ST.173 $6,001 $15,448 SO $0 $0 $0 22.3 3 Other $29 0% EBIT $36.406 22.3 Short Term Interest 0.9% $1,493 $3,357 2.1% Long Term Interest Taxes $11,045 6.8% Definitions: Sales: Unil sales tumes list price Direct Labor: Labor costs incurred to produce the product that was sold Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calolated on straight line 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product Sales: The sales force budget for each product. Other Charges not included in other categones such as Fees, Write Offs, and TOM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write ofts include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory EBIT. Earrings Before Interest and Taxes Short Term Interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35 tax rate. Profit Sharing: Profits shared with employees under the labor contract Net Profit: EBIT minus interest, taxes, and profit sharing $410 0.3% Profit Sharing Net Profit $20,101 12.3 Variables Margins 40% 30% 20% 10% ON Ace NA Awe Art Ant NA NA NA Round Dec. 31 2019 059559 Annual Report Andrews Balance Sheet 2019 2018 ASSETS Common Size 25.5 $31.910 $31,543 Cash 100% $13.445 $13,421 Accounts Recevable 21.23 $14,796 $20,149 Inventory Total Current Assets 57 6N $60.151 $71,113 78.4% $93,304 $90,824 Plant & Equipment Accumulated Depreciation -30% (537.954) (544,409) DEFINITIONS: Common Size: The common se column simply represents each item as a percentage of total assets for that year. Cash: Your end of year cash position Accounts Receivable: Reflects the lag between delivery and payment of your products, Inventories: The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, tal to your competitors. Plant & Equipment. The current value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's long term debt is in the form of bonds, and this represents the total value of your bonds Common Stock: The amount of capital invested by shareholders in the company, Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends 424% $52,415 $88.350 Total Fixed Assets 5123,527 100% $115.500 Total assets LIABILITIES & OWNERS' EQUITY Accounts Payable $8,781 $9,516 7.7% 12 YN 55.725 $15.717 Current Debt $34.742 $27,200 22N Long Term Debt $52,442 42.5 $49,248 Total Liabilities $12,080 9.8% $12443 Common Stock Retained Earnings $50,004 47 8 $53,80S $71,034 57.5% $66.251 Total Equity $123.527 100% $115.500 Total Lab. &0. Equity Cash Flow Statement 2019 2018 Cash Flows from Operating Activities: Net Income (Los) $20.101 $21,787 Depreciation $8.455 $6.220 The Cash Flow Statement examines what happened in the Cash Account during the year. Cash jections appear as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When negative cash flows exceed positives you are forced to seek emergency funding. For example, sales are bad and you find yourself carrying an abundance of excess wwentory, the report would show the increase in ay as afuge negative cash flow. Too much unexpected inventory could cutstrip your ws, exhaust your starting cash and force you to beg for money to keep your company afloat. SO SO Extraordinary gain/losses writeoffs Accounts Payable $735 $2,083 Inventory ($11.353) (54,044) Accounts Receivable $23 ($2.891) Cash Flow Summary Andrews $15,962 $23,158 20 Net cash from operations Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing Activities: (53,520) ($1,820 10 Dividends paid ($13,333) (57.49) $0 $0 Sales of Common Stock Purchase of Common Stock ($1.935) ($541) $0 SO Cash from long term debt Retirement of long term debt (87,513) $0 59,902 (52,070) 10 ($ 10,560) Change in current debt (net) Net cash from financing activities Not change in cash position Closing cash position ($12,809) ($307) $31.543 $ $10.770 $31,010 200 Operations Investment Finance Chg. Cash Annual Report Page 1 Human Resources Summary Andrews Baldwin Chester Digby 804 483 539 308 Needed Complemen Complement 804 483 539 so 1st Shit Complement 525 37 316 200 2nd Shili Complement 279 112 223 138 Overtime 0.0% 0.ON OOK 0.0% 10.0% 10.0% 8.25 60% 140 92 112 54 Tumover Rale New Employees Separated Employees Recruiting Spend Training Hours 0 0 0 0 SO $2.500 $5.000 0 0 40 80 Productivity Index 100.0% 100 ON 1004N 117.6 Recruiting Cost 5140 $92 $300 $124 Separation Cost DO SO SO $0 SO SO $431 5037 Training Cost Total HR Adren Cost 5140 $92 $821 $902 Labor Contract Next Year I Wages 525 53 525.63 $25.63 $2853 Bev 2.600 2.500 2.500 2.500 Prof Shang 2.0 2.0 20 20% Arnul R 5.ON 5.0% 5.0 50 TOM Summary Andrews Baldwin Chester Digby 50 $0 SO $0 SO Process Mgt Budgets Last Year CP Systems Vendor Quality rative Trang Channel Support frystems Con Engineering UNEP Green Program SO SO $$$$$s 50 30 50 50 30 50 30 50 30 50 TOM Budgets Last Year Benchmarking Quay Function Deployment CC Ung Trang GEM TOEM Bustamaties Expedis 50 88888 50 88888 30 30 50 30 so ODON Cumulative impact Material Cost Reduction Labor Cool Reduction Red RAD Tre Reduction de Costa Demand increase 0.00% 0.00% 0.00% O BOX 0.00 0.00% 0.00 OOON 0.00% ODON 0.00% ODON ODOW OOON 0.00% 0.00 000 COMP-XMO INQUIRER Page 11 20 19 15 Arti Cell 14 1 12 Old Gutid cond sem 10 LLAWS Dome TACO 0 2 8 14 16 18 20 10 12 Performance Andrews Baldwin Name Pin Chester SO Revised Name Size Revised Name Ace 10.3 Pfm Pimn 36 Sie 78 11/2010 Revised Bell 0.6 11/12/2019 Cell Awe 60 124 0.8 11/14/2019 14.0 12/11/2019 Bit 113 10 12/13/2019 City Art 2 AO 13.8 15 4/13/2017 12/19/2010 Bolt 102 7.8 12/22/2019 Cone Ant YO 8.8 110 124 12/2016 12/3/2019 Bu 122 08 12/6/2019 Cute 0.3 115 11/19 2010 Digby Name Pinn Size Revised W212020 Deal 52 148 Dino 7.8 11/30/2010 Dome 0.7 12/22/2010 Dug 17 10.3 11/11/2019 COMP-XME INQUIRER Page 10 Units Sold vs Demand Market Share Thi Core te Andrews Baldw Chester Dagb Industry Unit Sales Total Unit Demand Thrift Core Nane ellte Actual Market Share in Units Potential Marke Share Thrift 5,101 Thrin Coro 6.676 35 ON Nano Industry Unt Sales % of Marke Elite 5,101 27.0 3.641 19,394 18.4% 100 27.0% Ace 19.3 17.3% 18.45 14.01 Awe 17.3% 18.44 144 1701 Ant 4.4% 17.6N HO 7. 28 17.94 26.7 2.1 20.8 GOS 6.14 0.9 23 Boll Bu BN 11 39.5 17.AN 415 4.0% 17.9% 124 6.19 232 23 44.14 27 BN 231 4.0 22.01 27.2% 14N 14.7 1.49 DON sa ox 14,81 60 7.5% Con Cute 40N WAIN 1449 0.9 10 Total 204 10.15 Deal 20 20 N Dino 0. 11.08 12.79 an Dom ON Di 30 19.2 ON Tot 31 33 COMP-XM INQUIRER Elite Statisitos Accessibility Elite 3.470 3,476 Total Industry Unit Demand Actual Industry Unit Sales Segment of Total Industry Next Year's Segment Growth Rate Andrews 18.45 16N Baldwin Elite Customer Buying Criteria Expectations Importance 1. Age Ideal Age 0.0 345 Chester 2. Price $30.00 - 4200 24% 3 Ideal Position Pimn 11.7 Sure 103 22 4. Reliability MTBF 20000-26000 20% Digby ON 20% 40% 601 BOX 1001 Perceptual Map For Elite Actual vs Potential Market Share Elite 20 18 18 40 14 AN 12 19 Do Ace 20 1ON 2 09 U Andrews Bwin Cher Digby 4 14 10 20 to 18 Performance Actual Potential Top Products in Elite Segment Markel Units Sold to Share Seg 10% 011 Revision Date Stock Out Pimn Coord Size Coord List Price MTBF Age Dec 31 Name Promo Budget Cust. Awareness Sales Budget Cust Accessibility Dec. Cust. Survey Ae 124 98 142 00 20000 1.09 $1.200 77% 11/14/2010 12/2010 $ 1 000 20 Du 17 304 122 98 1.00 51.100 10 51,200 IN 10 Dug 10 MO 19/2010 11.7 103 $39.00 25000 $35.00 20000 53 00 25000 1.12 $950 52 $1.300 10 MO 110 104 1.91 51,100 72% 12/12010 12/10/2011 And 200 $ $100 $1.000 76 124 $3200 22000 2.24 SIN 100 102 TA 1.04 TON 12/27/2010 A 2019 51,00 11 $3700 28000 34000 24000 201 103 $1,200 51.100 $1.200 $1.100 $950 BIN ar 1.12 TIN $1000 11 282 90 5000 25000 2.10 $400 Do 54 182 107 11/12/2019 12/22/2010 11/10/2010 12/2010 MIN 11 3 85 3100 1000 11 12000 20000 110 2700 000 $1.no BO TON Cone 2 54 1.21 51.no 100 TON Elite Statisitos Accessibility Elite 3.470 3,476 Total Industry Unit Demand Actual Industry Unit Sales Segment of Total Industry Next Year's Segment Growth Rate Andrews 18.45 16N Baldwin Elite Customer Buying Criteria Expectations Importance 1. Age Ideal Age 0.0 345 Chester 2. Price $30.00 - 4200 24% 3 Ideal Position Pimn 11.7 Sure 103 22 4. Reliability MTBF 20000-26000 20% Digby ON 20% 40% 601 BOX 1001 Perceptual Map For Elite Actual vs Potential Market Share Elite 20 18 18 40 14 AN 12 19 Do Ace 20 1ON 2 09 U Andrews Bwin Cher Digby 4 14 10 20 to 18 Performance Actual Potential Top Products in Elite Segment Markel Units Sold to Share Seg 10% 011 Revision Date Stock Out Pimn Coord Size Coord List Price MTBF Age Dec 31 Name Promo Budget Cust. Awareness Sales Budget Cust Accessibility Dec. Cust. Survey Ae 124 98 142 00 20000 1.09 $1.200 77% 11/14/2010 12/2010 $ 1 000 20 Du 17 304 122 98 1.00 51.100 10 51,200 IN 10 Dug 10 MO 19/2010 11.7 103 $39.00 25000 $35.00 20000 53 00 25000 1.12 $950 52 $1.300 10 MO 110 104 1.91 51,100 72% 12/12010 12/10/2011 And 200 $ $100 $1.000 76 124 $3200 22000 2.24 SIN 100 102 TA 1.04 TON 12/27/2010 A 2019 51,00 11 $3700 28000 34000 24000 201 103 $1,200 51.100 $1.200 $1.100 $950 BIN ar 1.12 TIN $1000 11 282 90 5000 25000 2.10 $400 Do 54 182 107 11/12/2019 12/22/2010 11/10/2010 12/2010 MIN 11 3 85 3100 1000 11 12000 20000 110 2700 000 $1.no BO TON Cone 2 54 1.21 51.no 100 TON
