Segment A Segment B Segment C

Quarter Marker Motion Competitor Marker Motion Competitor Marker Motion

Y1, Q1 $124.96 $115.00 $130.64 $120.00 $136.32
Y1, Q2 $124.96 $115.00 $130.64 $120.00 $136.32
Y1, Q3 $124.96 $115.00 $130.64 $120.00 $136.32

$9.96 $10.64

Quarter Segment A Segment B Segment C

Y1, Q1 9,488 2,087 1,708
Y1, Q2 9,093 395 1,836 251 1,626
Y1, Q3 8,901 192 1,773 63 1,615

Large Customers
Quarter New Customers Existing Customers
Y1, Q1 10,255 8,721
Y1, Q2 9,606 649 8,698 23
Y1, Q3 9,234 372 8,862 -164

Battery Life
Desired Actual
Quarter A B C D
Y1, Q1 4.8 3.6 4.8 3.4 4
Y1, Q2 4.82 3.62 4.82 3.4 4.02
Y1, Q3 4.85 3.64 4.85 3.4 4.04

Battery Life Sensor Size Latency

Quarter Desired Actual Desired Actual Desired
Y1, Q1 3.4 4 66 60 12
Y1, Q2 3.4 4.02 66 60.1 12
Y1, Q3 3.4 4.04 66 60.1 12
 Segment D Small Customers
Competitor Marker Motion Competitor Marker Motion Competitor
$126.00 $119.28 $110.00 $132.06 $122.00
$126.00 $119.28 $110.00 $132.06 $122.00
$126.00 $119.28 $110.00 $132.06 $122.00

$10.32 $9.28 $10.06

Segment D Small Customers Large Customers

5,693 7,125 18,976
82 5,749 -56 7,061 64 18,305
11 5,808 -59 7,132 -71 18,096

Small Customers
New Customers Existing Customers
1,425 5,700
1,357 68 5,704 -4
1,320 37 5,811 -107

Sensor Size Latency

Desired Actual Desired
A B C D A B
63 42 42 66 60 10.2 9.8
62.7 41.8 41.8 66 60.1 10.1 9.8
62.4 41.6 41.6 66 60.1 10.1 9.7

Price
Actual Desired Actual
10 $92.44 $132.06
10 $92.44 $132.06
10 $92.44 $132.06
Observation of inc in customer in Seg D and Small customers, other segments are not price
sensitve and inc in price with discount for segment D and small customers can be
attempted

Price
Actual Desired / Actual
C D A B C D
4 12 10 $124.96 / $124.96 $130.64 / $130.64 $163.58 / $136.32 $83.50 / $119.28
4 12 10 $124.34 / $124.96 $129.99 / $130.64 $162.77 / $136.32 $83.50 / $119.28
4 12 10 $123.71 / $124.96 $129.34 / $130.64 $161.95 / $136.32 $83.50 / $119.28
 Y1, Q1 Y1, Q2 Y1, Q3 Y1, Q4
Segment A Sales Force Emphasis 25% 25% 25% 25%
Segment B Sales Force Emphasis 25% 25% 25% 25%
Segment C Sales Force Emphasis 25% 25% 25% 25%
Segment D Sales Force Emphasis 25% 25% 25% 25%
List Price $142 $142 $142 $142
Segment A Discounts 12% 12% 12% 12%
Segment B Discounts 8% 8% 8% 8%
Segment C Discounts 4% 4% 0% 1%
Segment D Discounts 16% 16% 16% 16%
Distributor Discounts 12% 12% 13% 13%
Sales Force 11 11 11 10
Spending on Small Customers 50% 50% 50% 45%
Spending to Retain Large Customers 50% 50% 50% 45%
Integrated Marketing Communication and Training $80,000 $80,000 $80,000 $85,000
Spending on Market Research $50,000 $50,000 $50,000 $50,000
Social Media Persuasion Spending $0 $0 $0 $0
Direct Customer Communication $0 $0 $0 $5,000
Battery Life Feature Spending $60,000 $60,000 $60,000 $60,000
Manufacturing Efficiency Improvement $0 $0 $0 $5,000
Sensor Size Feature Spending $60,000 $60,000 $60,000 $60,000
Latency Reduction Spending $0 $0 $0 $5,000

Y1, Q1 Y1, Q2 Y1, Q3 Y1, Q4

Revenue from Large Customers $2,370,194 $2,283,591 $2,256,737 $2,205,913
Revenue from Small Customers $890,340 $882,352 $891,158 $928,591
Total Revenue $3,260,534 $3,165,943 $3,147,895 $3,134,504
Variable Cost $1,859,119 $1,811,656 $1,806,715 $1,808,120
Gross Margin $1,401,415 $1,354,287 $1,341,180 $1,326,384
SG&A Expense $630,000 $630,000 $630,000 $630,000
R&D Expense $120,000 $120,000 $120,000 $120,000
Marketing Research Expenditures $130,000 $130,000 $130,000 $130,000
Other Operating Expense $130,421 $130,421 $130,421 $130,421
Total Operating Expense $1,010,421 $1,010,421 $1,010,421 $1,010,421
Net Income $390,994 $343,866 $330,758 $315,962
Cumulative Profit $0 $0 $0 $315,962
Y2, Q1 Y2, Q2 Y2, Q3 Y2, Q4 Y3, Q1 Y3, Q2 Y3, Q3 Y3, Q4
25% 24% 24% 24% 24% 20% 22% 22%
25% 26% 26% 26% 26% 27% 27% 27%
25% 26% 26% 26% 26% 27% 27% 27%
25% 24% 24% 24% 24% 26% 24% 24%
$142 $142 $142 $142 $142 $143 $143 $143
12% 13% 13% 13% 13% 13% 14% 14%
8% 8% 8% 9% 9% 9% 9% 9%
1% 2% 2% 3% 3% 3% 3% 3%
16% 17% 17% 17% 17% 17% 17% 17%
13% 14% 14% 14% 14% 14% 14% 14%
10 10 10 11 11 11 12 11
45% 47% 47% 47% 47% 47% 47% 45%
45% 47% 47% 47% 47% 47% 47% 45%
$90,000 $90,000 $90,000 $90,000 $95,000 $95,000 $100,000 $100,000
$50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
$0 $0 $0 $0 $0 $0 $0 $0
$0 $10,000 $10,000 $10,000 $5,000 $10,000 $10,000 $15,000
$60,000 $70,000 $70,000 $70,000 $50,000 $55,000 $55,000 $55,000
$10,000 $10,000 $10,000 $10,000 $20,000 $25,000 $30,000 $50,000
$60,000 $70,000 $70,000 $70,000 $90,000 $90,000 $95,000 $90,000
$5,000 $10,000 $10,000 $10,000 $15,000 $15,000 $15,000 $15,000

Y2, Q1 Y2, Q2 Y2, Q3 Y2, Q4 Y3, Q1 Y3, Q2 Y3, Q3 Y3, Q4

$2,663,146 $2,893,850 $3,157,490 $3,374,000 $3,477,168 $3,670,228 $3,732,809 $3,444,777
$935,206 $867,443 $942,946 $919,006 $949,747 $1,041,672 $1,132,077 $1,144,747
$3,598,353 $3,761,293 $4,100,436 $4,293,006 $4,426,915 $4,711,899 $4,864,886 $4,589,524
$2,131,182 $2,285,473 $2,600,160 $2,806,754 $2,987,332 $3,266,457 $3,442,831 $3,356,420
$1,467,170 $1,475,820 $1,500,277 $1,486,252 $1,439,583 $1,445,443 $1,422,055 $1,233,103
$585,000 $590,000 $590,000 $590,000 $640,000 $645,000 $645,000 $700,000
$130,000 $135,000 $160,000 $160,000 $160,000 $175,000 $185,000 $195,000
$140,000 $140,000 $150,000 $150,000 $150,000 $150,000 $155,000 $160,000
$130,421 $130,421 $130,421 $130,421 $130,421 $130,421 $130,421 $130,421
$985,421 $995,421 $1,030,421 $1,030,421 $1,080,421 $1,100,421 $1,115,421 $1,185,421
$481,749 $480,399 $469,855 $455,831 $359,162 $345,022 $306,633 $47,682
$797,711 $1,278,110 $1,747,966 $2,203,796 $2,562,958 $2,907,980 $3,214,613 $3,262,295
Y4, Q1 Y4, Q2 Y4, Q3
22% 22% 22%
27% 27% 27%
27% 27% 27%
24% 24% 24%
$143 $143 $143
14% 14% 14%
9% 9% 9%
3% 3% 3%
17% 17% 17%
14% 15% 15%
11 10 11
40% 45% 50%
50% 45% 50%
$100,000 $95,000 $100,000
$50,000 $50,000 $50,000
$0 $0 $0
$20,000 $15,000 $20,000
$60,000 $55,000 $55,000
$55,000 $55,000 $60,000
$95,000 $100,000 $100,000
$20,000 $15,000 $15,000

Y4, Q1 Y4, Q2 Y4, Q3 Y4, Q4

$3,742,116 $3,976,354 $3,948,126 $3,806,758
$1,311,476 $1,168,388 $1,384,752 $1,530,898
$5,053,592 $5,144,742 $5,332,878 $5,337,656
$3,783,648 $3,953,796 $4,217,350 $4,331,811
$1,269,944 $1,190,945 $1,115,528 $1,005,845
$650,000 $650,000 $595,000 $650,000
$210,000 $230,000 $225,000 $230,000
$165,000 $170,000 $160,000 $170,000
$130,421 $130,421 $130,421 $130,421
$1,155,421 $1,180,421 $1,110,421 $1,180,421
$114,523 $10,524 $5,107 ($174,577)
$3,376,817 $3,387,341 $3,392,448 $3,217,871
 Y1, Q1 Y1, Q2 Y1, Q3 Y1, Q4
Segment A Sales Force Emphasis 25% 25% 25% 25%
Segment B Sales Force Emphasis 25% 25% 25% 25%
Segment C Sales Force Emphasis 25% 25% 25% 25%
Segment D Sales Force Emphasis 25% 25% 25% 25%
List Price $142 $142 $142 $142
Segment A Discounts 12% 12% 11% 12%
Segment B Discounts 8% 8% 9% 9%
Segment C Discounts 4% 4% 3% 3%
Segment D Discounts 16% 16% 17% 17%
Distributor Discounts 12% 12% 13% 13%
Sales Force 11 11 11 10
Spending on Small Customers 50% 50% 50% 45%
Spending to Retain Large Customers 50% 50% 50% 50%
Integrated Marketing Communication and Training $80,000 $80,000 $80,000 $85,000
Spending on Market Research $50,000 $50,000 $50,000 $50,000
Social Media Persuasion Spending $0 $0 $0 $0
Direct Customer Communication $0 $0 $0 $5,000
Battery Life Feature Spending $60,000 $60,000 $60,000 $60,000
Manufacturing Efficiency Improvement $0 $0 $0 $10,000
Sensor Size Feature Spending $60,000 $60,000 $60,000 $65,000
Latency Reduction Spending $0 $0 $0 $5,000

Y1, Q1 Y1, Q2 Y1, Q3 Y1, Q4

Revenue from Large Customers $2,370,194 $2,283,591 $2,256,737 $2,237,105
Revenue from Small Customers $890,340 $882,352 $891,158 $928,591
Total Revenue $3,260,534 $3,165,943 $3,147,895 $3,165,696
Variable Cost $1,859,119 $1,811,656 $1,806,715 $1,829,263
Gross Margin $1,401,415 $1,354,287 $1,341,180 $1,336,433
SG&A Expense $630,000 $630,000 $630,000 $630,000
R&D Expense $120,000 $120,000 $120,000 $120,000
Marketing Research Expenditures $130,000 $130,000 $130,000 $130,000
Other Operating Expense $130,421 $130,421 $130,421 $130,421
Total Operating Expense $1,010,421 $1,010,421 $1,010,421 $1,010,421
Net Income $390,994 $343,866 $330,758 $326,012
Cumulative Profit $0 $0 $0 $326,012
Y2, Q1 Y2, Q2 Y2, Q3 Y2, Q4 Y3, Q1 Y3, Q2 Y3, Q3 Y3, Q4
24% 24% 24% 24% 24% 24% 25% 25%
25% 25% 25% 25% 25% 25% 25% 25%
26% 26% 26% 26% 26% 26% 25% 25%
25% 25% 25% 25% 25% 25% 25% 25%
$142 $142 $142 $142 $142 $142 $143 $143
12% 12% 12% 12% 12% 12% 13% 13%
10% 10% 9% 9% 9% 9% 9% 9%
3% 3% 4% 4% 4% 4% 5% 5%
17% 17% 16% 16% 16% 16% 17% 17%
13% 13% 14% 14% 14% 14% 15% 15%
10 10 11 11 11 11 11 11
45% 50% 50% 50% 50% 50% 50% 50%
50% 50% 50% 50% 50% 50% 50% 50%
$90,000 $90,000 $90,000 $90,000 $100,000 $100,000 $100,000 $100,000
$50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
$0 $0 $0 $0 $0 $0 $0 $0
$10,000 $10,000 $10,000 $10,000 $15,000 $20,000 $20,000 $20,000
$60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000
$10,000 $15,000 $15,000 $15,000 $15,000 $20,000 $25,000 $25,000
$65,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000
$5,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

Y2, Q1 Y2, Q2 Y2, Q3 Y2, Q4 Y3, Q1 Y3, Q2 Y3, Q3 Y3, Q4

$2,738,505 $2,965,583 $3,029,062 $3,101,559 $3,385,562 $3,574,198 $3,622,625 $3,306,059
$932,909 $863,938 $991,227 $1,016,217 $1,231,925 $1,291,913 $1,367,152 $1,325,902
$3,671,415 $3,829,521 $4,020,289 $4,117,775 $4,617,486 $4,866,111 $4,989,777 $4,631,961
$2,184,606 $2,340,462 $2,526,366 $2,658,495 $3,063,425 $3,316,270 $3,490,795 $3,337,660
$1,486,809 $1,489,058 $1,493,923 $1,459,280 $1,554,062 $1,549,840 $1,498,982 $1,294,302
$585,000 $590,000 $590,000 $640,000 $640,000 $650,000 $650,000 $650,000
$140,000 $140,000 $155,000 $155,000 $155,000 $155,000 $160,000 $165,000
$140,000 $150,000 $150,000 $150,000 $150,000 $165,000 $170,000 $170,000
$130,421 $130,421 $130,421 $130,421 $130,421 $130,421 $130,421 $130,421
$995,421 $1,010,421 $1,025,421 $1,075,421 $1,075,421 $1,100,421 $1,110,421 $1,115,421
$491,388 $478,637 $468,502 $383,858 $478,640 $449,419 $388,561 $178,880
$817,399 $1,296,037 $1,764,539 $2,148,397 $2,627,037 $3,076,456 $3,465,017 $3,643,897
Y4, Q1 Y4, Q2 Y4, Q3
30% 25% 25%
20% 25% 25%
20% 25% 25%
30% 25% 25%
$143 $143 $143
13% 13% 13%
9% 9% 8%
5% 5% 4%
17% 17% 17%
15% 15% 15%
11 11 11
50% 50% 45%
45% 45% 45%
$100,000 $100,000 $100,000
$50,000 $50,000 $50,000
$0 $0 $0
$20,000 $20,000 $20,000
$60,000 $60,000 $60,000
$25,000 $25,000 $25,000
$70,000 $70,000 $70,000
$10,000 $10,000 $10,000

Y4, Q1 Y4, Q2 Y4, Q3 Y4, Q4

$3,346,423 $3,404,403 $3,494,346 $3,789,377
$1,412,099 $1,505,820 $1,734,310 $1,620,992
$4,758,522 $4,910,223 $5,228,656 $5,410,368
$3,515,878 $3,719,337 $4,061,357 $4,296,460
$1,242,644 $1,190,886 $1,167,299 $1,113,909
$650,000 $650,000 $650,000 $650,000
$165,000 $165,000 $165,000 $165,000
$170,000 $170,000 $170,000 $170,000
$130,421 $130,421 $130,421 $130,421
$1,115,421 $1,115,421 $1,115,421 $1,115,421
$127,222 $75,464 $51,878 ($1,513)
$3,771,120 $3,846,584 $3,898,462 $3,896,949
 Y1, Q1 Y1, Q2 Y1, Q3 Y1, Q4
Segment A Sales Force Emphasis 25% 25% 26% 25%
Segment B Sales Force Emphasis 25% 25% 24% 25%
Segment C Sales Force Emphasis 25% 25% 24% 25%
Segment D Sales Force Emphasis 25% 25% 26% 25%
List Price $142 $142 $142 $142
Segment A Discounts 12% 12% 12% 12%
Segment B Discounts 8% 8% 8% 8%
Segment C Discounts 4% 4% 4% 4%
Segment D Discounts 16% 16% 17% 17%
Distributor Discounts 12% 12% 13% 13%
Sales Force 11 11 11 11
Spending on Small Customers 50% 50% 50% 45%
Spending to Retain Large Customers 50% 50% 50% 55%
Integrated Marketing Communication and Training $80,000 $80,000 $80,000 $80,000
Spending on Market Research $50,000 $50,000 $50,000 $50,000
Social Media Persuasion Spending $0 $0 $0 $0
Direct Customer Communication $0 $0 $0 $0
Battery Life Feature Spending $60,000 $60,000 $60,000 $60,000
Manufacturing Efficiency Improvement $0 $0 $0 $0
Sensor Size Feature Spending $60,000 $60,000 $60,000 $60,000
Latency Reduction Spending $0 $0 $0 $0

Y1, Q1 Y1, Q2 Y1, Q3 Y1, Q4

Revenue from Large Customers $2,370,194 $2,283,591 $2,256,737 $2,296,526
Revenue from Small Customers $890,340 $882,352 $891,158 $928,591
Total Revenue $3,260,534 $3,165,943 $3,147,895 $3,225,117
Variable Cost $1,859,119 $1,811,656 $1,806,715 $1,869,514
Gross Margin $1,401,415 $1,354,287 $1,341,180 $1,355,602
SG&A Expense $630,000 $630,000 $630,000 $630,000
R&D Expense $120,000 $120,000 $120,000 $120,000
Marketing Research Expenditures $130,000 $130,000 $130,000 $130,000
Other Operating Expense $130,421 $130,421 $130,421 $130,421
Total Operating Expense $1,010,421 $1,010,421 $1,010,421 $1,010,421
Net Income $390,994 $343,866 $330,758 $345,181
Cumulative Profit $0 $0 $0 $345,181
Y2, Q1 Y2, Q2 Y2, Q3 Y2, Q4 Y3, Q1 Y3, Q2 Y3, Q3 Y3, Q4
25% 25% 25% 25% 25% 25% 25% 25%
25% 25% 25% 25% 25% 25% 25% 25%
25% 25% 25% 25% 25% 25% 25% 25%
25% 25% 25% 25% 25% 25% 25% 25%
$142 $142 $142 $142 $142 $142 $142 $142
12% 12% 12% 12% 12% 12% 12% 12%
8% 8% 8% 8% 8% 8% 8% 8%
4% 4% 4% 4% 4% 4% 4% 4%
17% 17% 17% 17% 17% 17% 17% 17%
13% 13% 13% 13% 13% 13% 13% 13%
11 11 11 11 11 11 11 11
40% 35% 30% 35% 40% 40% 35% 35%
60% 60% 65% 65% 60% 60% 65% 65%
$80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000
$50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $65,000
$0 $0 $0 $5,000 $5,000 $10,000 $10,000 $25,000
$60,000 $60,000 $60,000 $60,000 $60,000 $65,000 $65,000 $70,000
$0 $5,000 $5,000 $10,000 $10,000 $10,000 $10,000 $15,000

Y2, Q1 Y2, Q2 Y2, Q3 Y2, Q4 Y3, Q1 Y3, Q2 Y3, Q3 Y3, Q4

$2,752,714 $3,257,864 $3,836,199 $4,334,861 $4,717,778 $4,488,810 $4,384,932 $4,143,897
$922,561 $807,511 $722,000 $572,712 $604,449 $638,820 $680,148 $584,241
$3,675,275 $4,065,374 $4,558,200 $4,907,572 $5,322,227 $5,127,630 $5,065,080 $4,728,139
$2,184,790 $2,477,211 $2,850,317 $3,148,777 $3,507,780 $3,475,221 $3,527,499 $3,380,257
$1,490,486 $1,588,163 $1,707,883 $1,758,795 $1,814,447 $1,652,410 $1,537,581 $1,347,882
$630,000 $630,000 $630,000 $630,000 $630,000 $630,000 $630,000 $630,000
$120,000 $120,000 $125,000 $125,000 $135,000 $135,000 $145,000 $145,000
$130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $130,000
$130,421 $130,421 $130,421 $130,421 $130,421 $130,421 $130,421 $130,421
$1,010,421 $1,010,421 $1,015,421 $1,015,421 $1,025,421 $1,025,421 $1,035,421 $1,035,421
$480,064 $577,742 $692,462 $743,374 $789,025 $626,988 $502,159 $312,460
$825,245 $1,402,987 $2,095,449 $2,838,823 $3,627,848 $4,254,836 $4,756,995 $5,069,456
Y4, Q1 Y4, Q2 Y4, Q3
25% 25% 25%
25% 25% 25%
25% 25% 25%
25% 25% 25%
$142 $142 $142
12% 13% 12%
8% 8% 8%
4% 4% 3%
17% 17% 17%
13% 13% 13%
11 11 11
35% 35% 30%
65% 65% 65%
$80,000 $80,000 $80,000
$50,000 $50,000 $50,000
$0 $0 $0
$0 $0 $0
$65,000 $65,000 $65,000
$30,000 $30,000 $30,000
$75,000 $75,000 $75,000
$20,000 $20,000 $20,000

Y4, Q1 Y4, Q2 Y4, Q3 Y4, Q4

$4,274,203 $4,373,887 $4,433,113 $4,515,275
$583,838 $601,656 $685,640 $629,295
$4,858,040 $4,975,543 $5,118,754 $5,144,570
$3,569,426 $3,761,812 $4,004,705 $4,113,675
$1,288,614 $1,213,731 $1,114,048 $1,030,895
$630,000 $630,000 $630,000 $630,000
$175,000 $190,000 $190,000 $190,000
$130,000 $130,000 $130,000 $130,000
$130,421 $130,421 $130,421 $130,421
$1,065,421 $1,080,421 $1,080,421 $1,080,421
$223,193 $133,310 $33,627 ($49,526)
$5,292,648 $5,425,958 $5,459,585 $5,410,059
 Y1, Q1 Y1, Q2 Y1, Q3 Y1, Q4
Segment A Sales Force Emphasis 25% 25% 25% 25%
Segment B Sales Force Emphasis 25% 25% 25% 25%
Segment C Sales Force Emphasis 25% 25% 25% 25%
Segment D Sales Force Emphasis 25% 25% 25% 25%
List Price $142 $142 $142 $142
Segment A Discounts 12% 12% 12% 12%
Segment B Discounts 8% 8% 8% 8%
Segment C Discounts 4% 4% 4% 4%
Segment D Discounts 16% 16% 16% 16%
Distributor Discounts 12% 12% 12% 12%
Sales Force $11 $11 $11 $11
Spending on Small Customers 50% 50% 45% 45%
Spending to Retain Large Customers 50% 50% 50% 55%
Integrated Marketing Communication and Training $80,000 $80,000 $80,000 $80,000
Spending on Market Research $50,000 $50,000 $50,000 $50,000
Social Media Persuasion Spending $0 $0 $0 $0
Direct Customer Communication $0 $0 $0 $0
Battery Life Feature Spending $60,000 $60,000 $60,000 $60,000
Manufacturing Efficiency Improvement $0 $0 $0 $0
Sensor Size Feature Spending $60,000 $60,000 $60,000 $60,000
Latency Reduction Spending $0 $0 $0 $0

Y1, Q1 Y1, Q2 Y1, Q3 Y1, Q4

Revenue from Large Customers $2,370,194 $2,283,591 $2,256,737 $2,350,904
Revenue from Small Customers $890,340 $882,352 $891,158 $792,070
Total Revenue $3,260,534 $3,165,943 $3,147,895 $3,142,974
Variable Cost $1,859,119 $1,811,656 $1,806,715 $1,808,767
Gross Margin $1,401,415 $1,354,287 $1,341,180 $1,334,207
SG&A Expense $630,000 $630,000 $630,000 $630,000
R&D Expense $120,000 $120,000 $120,000 $120,000
Marketing Research Expenditures $130,000 $130,000 $130,000 $130,000
Other Operating Expense $130,421 $130,421 $130,421 $130,421
Total Operating Expense $1,010,421 $1,010,421 $1,010,421 $1,010,421
Net Income $390,994 $343,866 $330,758 $323,786
Cumulative Profit $0 $0 $0 $323,786
Y2, Q1 Y2, Q2 Y2, Q3 Y2, Q4 Y3, Q1 Y3, Q2 Y3, Q3 Y3, Q4
25% 25% 25% 25% 25% 25% 25% 25%
25% 25% 25% 25% 25% 25% 25% 25%
25% 25% 25% 25% 25% 25% 25% 25%
25% 25% 25% 25% 25% 25% 25% 25%
$142 $142 $142 $142 $142 $142 $142 $142
12% 12% 12% 12% 12% 12% 12% 12%
8% 8% 8% 8% 8% 8% 8% 8%
4% 4% 4% 4% 4% 4% 4% 4%
16% 16% 16% 16% 16% 16% 16% 16%
12% 12% 12% 12% 12% 12% 12% 12%
$11 $11 $11 $11 $11 $11 $11 $11
40% 40% 40% 40% 40% 40% 40% 40%
55% 55% 55% 55% 55% 55% 55% 55%
$80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000
$50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $5,000 $10,000 $10,000 $15,000
$60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $65,000 $70,000
$0 $10,000 $20,000 $30,000 $30,000 $30,000 $35,000 $40,000
$60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $65,000 $70,000
$0 $10,000 $10,000 $25,000 $25,000 $25,000 $25,000 $25,000

Y2, Q1 Y2, Q2 Y2, Q3 Y2, Q4 Y3, Q1 Y3, Q2 Y3, Q3 Y3, Q4

$2,755,271 $3,185,053 $3,565,326 $3,861,748 $4,128,861 $4,133,907 $4,133,195 $3,730,371
$844,268 $759,275 $771,716 $718,748 $750,983 $698,666 $696,294 $649,334
$3,599,539 $3,944,329 $4,337,042 $4,580,496 $4,879,845 $4,832,573 $4,829,489 $4,379,704
$2,125,865 $2,389,472 $2,699,107 $2,923,030 $3,202,782 $3,263,187 $3,354,483 $3,132,199
$1,473,674 $1,554,857 $1,637,935 $1,657,465 $1,677,063 $1,569,386 $1,475,005 $1,247,506
$630,000 $630,000 $630,000 $630,000 $630,000 $630,000 $630,000 $630,000
$120,000 $120,000 $140,000 $150,000 $175,000 $175,000 $175,000 $190,000
$130,000 $130,000 $130,000 $130,000 $130,000 $135,000 $140,000 $140,000
$130,421 $130,421 $130,421 $130,421 $130,421 $130,421 $130,421 $130,421
$1,010,421 $1,010,421 $1,030,421 $1,040,421 $1,065,421 $1,070,421 $1,075,421 $1,090,421
$463,253 $544,436 $607,513 $617,044 $611,641 $498,965 $399,584 $157,084
$787,039 $1,331,474 $1,938,987 $2,556,032 $3,167,673 $3,666,638 $4,066,222 $4,223,306
Y4, Q1 Y4, Q2 Y4, Q3
25% 25% 25%
25% 25% 25%
25% 25% 25%
25% 25% 25%
$142 $142 $142
12% 12% 12%
8% 8% 8%
4% 4% 4%
16% 16% 16%
12% 12% 12%
$11 $11 $11
40% 40% 40%
55% 55% 55%
$90,000 $90,000 $90,000
$50,000 $50,000 $50,000
$0 $0 $0
$20,000 $20,000 $20,000
$75,000 $75,000 $80,000
$50,000 $55,000 $55,000
$70,000 $70,000 $80,000
$25,000 $25,000 $25,000

Y4, Q1 Y4, Q2 Y4, Q3 Y4, Q4

$3,765,648 $3,918,874 $4,047,277 $4,216,783
$675,515 $723,764 $853,522 $897,880
$4,441,163 $4,642,638 $4,900,799 $5,114,662
$3,273,145 $3,524,071 $3,827,141 $4,118,264
$1,168,018 $1,118,568 $1,073,658 $996,398
$630,000 $640,000 $640,000 $640,000
$205,000 $220,000 $225,000 $240,000
$145,000 $160,000 $160,000 $160,000
$130,421 $130,421 $130,421 $130,421
$1,110,421 $1,150,421 $1,155,421 $1,170,421
$57,596 ($31,854) ($81,764) ($174,023)
$4,280,902 $4,249,048 $4,167,285 $3,993,261
 Y1, Q1 Y1, Q2 Y1, Q3 Y1, Q4
Segment A Sales Force Emphasis 25% 25% 25% 25%
Segment B Sales Force Emphasis 25% 25% 25% 25%
Segment C Sales Force Emphasis 25% 25% 25% 25%
Segment D Sales Force Emphasis 25% 25% 25% 25%
List Price $142 $142 $142 $142
Segment A Discounts 12% 12% 12% 12%
Segment B Discounts 8% 8% 8% 8%
Segment C Discounts 4% 4% 4% 4%
Segment D Discounts 16% 16% 16% 16%
Distributor Discounts 12% 12% 12% 12%
Sales Force 11 11 11 11
Spending on Small Customers 50% 50% 35% 35%
Spending to Retain Large Customers 50% 50% 60% 60%
Integrated Marketing Communication and Training $80,000 $80,000 $80,000 $80,000
Spending on Market Research $50,000 $50,000 $50,000 $50,000
Social Media Persuasion Spending $0 $0 $0 $0
Direct Customer Communication $0 $0 $0 $0
Battery Life Feature Spending $60,000 $60,000 $60,000 $60,000
Manufacturing Efficiency Improvement $0 $0 $0 $0
Sensor Size Feature Spending $60,000 $60,000 $60,000 $60,000
Latency Reduction Spending $0 $0 $0 $0

Y1, Q1 Y1, Q2 Y1, Q3 Y1, Q4

Revenue from Large Customers $2,370,194 $2,283,591 $2,256,737 $2,636,478
Revenue from Small Customers $890,340 $882,352 $891,158 $669,501
Total Revenue $3,260,534 $3,165,943 $3,147,895 $3,305,979
Variable Cost $1,859,119 $1,811,656 $1,806,715 $1,901,620
Gross Margin $1,401,415 $1,354,287 $1,341,180 $1,404,359
SG&A Expense $630,000 $630,000 $630,000 $630,000
R&D Expense $120,000 $120,000 $120,000 $120,000
Marketing Research Expenditures $130,000 $130,000 $130,000 $130,000
Other Operating Expense $130,421 $130,421 $130,421 $130,421
Total Operating Expense $1,010,421 $1,010,421 $1,010,421 $1,010,421
Net Income $390,994 $343,866 $330,758 $393,937
Cumulative Profit $0 $0 $0 $393,937
Y2, Q1 Y2, Q2 Y2, Q3 Y2, Q4 Y3, Q1 Y3, Q2 Y3, Q3 Y3, Q4
25% 25% 25% 25% 25% 25% 25% 25%
25% 25% 25% 25% 25% 25% 25% 25%
25% 25% 25% 25% 25% 25% 25% 25%
25% 25% 25% 25% 25% 25% 25% 25%
$142 $142 $142 $142 $142 $142 $142 $142
12% 12% 12% 12% 12% 12% 12% 12%
8% 8% 8% 8% 8% 8% 8% 8%
4% 4% 4% 4% 4% 4% 4% 4%
16% 16% 16% 16% 16% 16% 16% 16%
12% 12% 12% 12% 12% 12% 12% 12%
11 11 11 11 11 11 11 11
35% 35% 35% 35% 35% 35% 35% 35%
60% 60% 60% 60% 60% 60% 60% 60%
$80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $85,000 $90,000
$50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $1,000 $5,000
$60,000 $60,000 $65,000 $65,000 $70,000 $75,000 $75,000 $75,000
$5,000 $10,000 $15,000 $15,000 $20,000 $25,000 $25,000 $25,000
$60,000 $60,000 $65,000 $65,000 $70,000 $75,000 $75,000 $75,000
$0 $10,000 $10,000 $15,000 $20,000 $20,000 $20,000 $20,000

Y2, Q1 Y2, Q2 Y2, Q3 Y2, Q4 Y3, Q1 Y3, Q2 Y3, Q3 Y3, Q4

$3,217,556 $3,614,012 $3,992,446 $4,331,900 $4,588,017 $4,573,957 $4,571,470 $4,177,801
$632,082 $580,483 $597,516 $564,373 $589,072 $548,299 $547,874 $519,251
$3,849,639 $4,194,495 $4,589,962 $4,896,272 $5,177,089 $5,122,256 $5,119,344 $4,697,053
$2,271,530 $2,536,974 $2,852,021 $3,128,360 $3,405,942 $3,480,437 $3,595,517 $3,408,315
$1,578,109 $1,657,522 $1,737,941 $1,767,913 $1,771,147 $1,641,819 $1,523,827 $1,288,738
$630,000 $630,000 $630,000 $630,000 $630,000 $630,000 $630,000 $635,000
$120,000 $125,000 $140,000 $155,000 $160,000 $180,000 $195,000 $195,000
$130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $136,000
$130,421 $130,421 $130,421 $130,421 $130,421 $130,421 $130,421 $130,421
$1,010,421 $1,015,421 $1,030,421 $1,045,421 $1,050,421 $1,070,421 $1,085,421 $1,096,421
$567,688 $642,100 $707,520 $722,491 $720,726 $571,397 $438,406 $192,317
$961,625 $1,603,725 $2,311,245 $3,033,736 $3,754,462 $4,325,860 $4,764,265 $4,956,582
Y4, Q1 Y4, Q2 Y4, Q3
25% 25% 25%
25% 25% 25%
25% 25% 25%
25% 25% 25%
$142 $142 $142
12% 12% 12%
8% 8% 8%
4% 4% 4%
16% 16% 16%
12% 12% 12%
11 11 11
35% 35% 35%
60% 60% 60%
$90,000 $90,000 $90,000
$50,000 $50,000 $50,000
$0 $0 $0
$10,000 $10,000 $15,000
$75,000 $80,000 $80,000
$30,000 $35,000 $35,000
$75,000 $80,000 $80,000
$25,000 $30,000 $30,000

Y4, Q1 Y4, Q2 Y4, Q3 Y4, Q4

$4,266,164 $4,320,512 $4,398,758 $4,504,419
$553,020 $587,926 $688,090 $712,830
$4,819,184 $4,908,438 $5,086,849 $5,217,249
$3,611,338 $3,800,659 $4,080,828 $4,335,721
$1,207,846 $1,107,779 $1,006,021 $881,529
$640,000 $640,000 $640,000 $640,000
$195,000 $205,000 $225,000 $225,000
$145,000 $150,000 $150,000 $155,000
$130,421 $130,421 $130,421 $130,421
$1,110,421 $1,125,421 $1,145,421 $1,150,421
$97,425 ($17,643) ($139,401) ($268,893)
$5,054,007 $5,036,364 $4,896,964 $4,628,071