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

FIRM 1: CUARENTENA CONSORCIO INDUSTRY C

CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 1-1, QUARTER 14 PAGE 1
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

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

ACTIVE PRODUCT? YES YES NO NO NO

SALES (Units) 79,464 79,464 0 0 0
UNFILLED ORDERS 0 0 0 0 0

PRICE 1,034 1,034 650 650 650

DEALER REBATES 0 0 0 0 0

REVENUE 82,165,776 82,165,776 0 0 0

PRODUCT COSTS 39,396,581 39,396,581 0 0 0
REBATES OFFERED 0 0 0 0 0
SALES COMMISSIONS 821,657 821,657 0 0 0
TRANSPORTATION 1,271,424 1,271,424 0 0 0
DUTIES & TARIFFS 0 0 0 0 0
─────────── ─────────── ─────────── ─────────── ───────────
GROSS MARGIN 40,676,114 40,676,114 0 0 0

FIXED COSTS:
ADMINISTRAT O/H 106,966 106,966 0 0 0
ADVERTISING 1,200,000 1,200,000 0 0 0
PROMOTION 2,000,000 2,000,000 0 0 0
SALES SALARIES 412,500 412,500 0 0 0
SALES O/H 1,234,157 1,234,157 0 0 0
TOTAL FIXED COSTS 4,953,623 4,953,623 0 0 0
─────────── ─────────── ─────────── ─────────── ───────────
OPERATING INCOME 35,722,491 35,722,491 0 0 0

═════════════════════════════════════════════════════════════════════════════
MEDIA CONTENT & MIX 7 & 55555 10 & 91115 1 & 55555 10 & 91115
PROMOTIONAL TYPE 2 10 10 10

SALES FORCE:
SIZE 55 60 55 40
TIME ALLOCATION (%s) 100 0 0 0
EFFORT 55.00 .00 .00 .00
SALARY + COMMISSION 2,500 + 1 2,500 + 1 2,500 + 1 2,500 + 1

SALES VOLUME FORECAST (Units) 85,000 0 0 0

PRODUCT COMPOSITION 20/68/ 8/32/ 5/5/5

PRODUCTION ORDER (Units) 68,313

EMERGENCY PRODUCTION LIMIT (%) 0
RESEARCH & DEVELOPMENT 450,000

PLANT CAPACITY ORDER (Units) 0

*****************************************************************************
FIRM 1: CUARENTENA CONSORCIO INDUSTRY C
CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 1-1, QUARTER 14 PAGE 2
*****************************************************************************

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 49
TIME ALLOCATION (%s) 0
EFFORT .00
SALARY + COMMISSION 2,500 + 1

SALES VOLUME FORECAST (Units) 0

PRODUCT COMPOSITION 20/68/ 8/32/ 5/5/5

PRODUCTION ORDER (Units) 68,313

EMERGENCY PRODUCTION LIMIT (%) 0
RESEARCH & DEVELOPMENT 450,000

PLANT CAPACITY ORDER (Units) 0

*****************************************************************************
FIRM 1: CUARENTENA CONSORCIO INDUSTRY C
CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 1-2, QUARTER 14 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) 104,510 0 93,543 0 0
UNFILLED ORDERS 646 0 493 0 0

PRICE 830 650 822 890 880

DEALER REBATES 10 0 10 0 10

REVENUE 86,762,646 0 76,892,346 0 0

PRODUCT COSTS 34,923,342 0 31,258,580 0 0
REBATES OFFERED 1,045,100 0 935,430 0 0
SALES COMMISSIONS 867,626 0 768,923 0 0
TRANSPORTATION 2,370,182 0 1,964,403 0 0
DUTIES & TARIFFS 2,327,469 0 1,537,846 0 0
─────────── ─────────── ─────────── ─────────── ───────────
GROSS MARGIN 45,228,927 0 40,427,164 0 0

FIXED COSTS:
ADMINISTRAT O/H 214,362 0 104,291 0 0
ADVERTISING 6,200,000 0 3,000,000 0 1,500,000
PROMOTION 6,000,000 0 3,000,000 0 1,600,000
SALES SALARIES 1,117,500 0 450,000 0 300,000
SALES O/H 1,985,126 0 1,218,923 0 300,000
TOTAL FIXED COSTS 15,516,988 0 7,773,214 0 3,700,000
─────────── ─────────── ─────────── ─────────── ───────────
OPERATING INCOME 29,711,939 0 32,653,950 0 -3,700,000

═════════════════════════════════════════════════════════════════════════════
MEDIA CONTENT & MIX 1 & 55555 15 & 55555 15 & 92259 7 & 55555
PROMOTIONAL TYPE 10 10 67 5

SALES FORCE:
SIZE 55 60 55 40
TIME ALLOCATION (%s) 0 100 0 100
EFFORT .00 60.00 .00 40.00
SALARY + COMMISSION 2,500 + 1 2,500 + 1 2,500 + 1 2,500 + 1

SALES VOLUME FORECAST (Units) 0 90,000 0 18,000

PRODUCT COMPOSITION 56/20/63/56/ 5/6/6

PRODUCTION ORDER (Units) 104,511

EMERGENCY PRODUCTION LIMIT (%) 0
RESEARCH & DEVELOPMENT 650,000

PLANT CAPACITY ORDER (Units) 0

*****************************************************************************
FIRM 1: CUARENTENA CONSORCIO INDUSTRY C
CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 1-2, QUARTER 14 PAGE 4
*****************************************************************************

REGION 5
(PACIFIC )
───────────

ACTIVE PRODUCT? YES

SALES (Units) 10,967
UNFILLED ORDERS 153

PRICE 900
DEALER REBATES 10

REVENUE 9,870,300
PRODUCT COSTS 3,664,762
REBATES OFFERED 109,670
SALES COMMISSIONS 98,703
TRANSPORTATION 405,779
DUTIES & TARIFFS 789,623
───────────
GROSS MARGIN 4,801,763

FIXED COSTS:
ADMINISTRAT O/H 110,071
ADVERTISING 1,700,000
PROMOTION 1,400,000
SALES SALARIES 367,500
SALES O/H 466,203
TOTAL FIXED COSTS 4,043,774
───────────
OPERATING INCOME 757,989

═════════════════════════════════════════════════════════════════════════════
MEDIA CONTENT & MIX 1 & 55555
PROMOTIONAL TYPE 1

SALES FORCE:
SIZE 49
TIME ALLOCATION (%s) 100
EFFORT 49.00
SALARY + COMMISSION 2,500 + 1

SALES VOLUME FORECAST (Units) 10,000

PRODUCT COMPOSITION 56/20/63/56/ 5/6/6

PRODUCTION ORDER (Units) 104,511

EMERGENCY PRODUCTION LIMIT (%) 0
RESEARCH & DEVELOPMENT 650,000

PLANT CAPACITY ORDER (Units) 0

*****************************************************************************
FIRM 1: CUARENTENA CONSORCIO INDUSTRY C
CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 1-3, QUARTER 14 PAGE 5
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

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

ACTIVE PRODUCT? YES NO NO YES NO

SALES (Units) 45,000 0 0 45,000 0
UNFILLED ORDERS 0 0 0 0 0

PRICE 875 607 650 875 650

DEALER REBATES 10 10 0 10 0

REVENUE 39,375,000 0 0 39,375,000 0

PRODUCT COSTS 16,204,931 0 0 16,204,931 0
REBATES OFFERED 450,000 0 0 450,000 0
SALES COMMISSIONS 393,750 0 0 393,750 0
TRANSPORTATION 1,395,000 0 0 1,395,000 0
DUTIES & TARIFFS 1,574,999 0 0 1,574,999 0
─────────── ─────────── ─────────── ─────────── ───────────
GROSS MARGIN 19,356,320 0 0 19,356,320 0

FIXED COSTS:
ADMINISTRAT O/H 100,000 0 0 100,000 0
ADVERTISING 2,000,000 0 0 2,000,000 0
PROMOTION 2,000,000 0 0 2,000,000 0
SALES SALARIES 412,500 0 0 412,500 0
SALES O/H 806,250 0 0 806,250 0
TOTAL FIXED COSTS 5,318,750 0 0 5,318,750 0
─────────── ─────────── ─────────── ─────────── ───────────
OPERATING INCOME 14,037,570 0 0 14,037,570 0

═════════════════════════════════════════════════════════════════════════════
MEDIA CONTENT & MIX 7 & 91119 1 & 55555 7 & 91119 1 & 55555
PROMOTIONAL TYPE 46 10 10 10

SALES FORCE:
SIZE 55 60 55 40
TIME ALLOCATION (%s) 0 0 100 0
EFFORT .00 .00 55.00 .00
SALARY + COMMISSION 2,500 + 1 2,500 + 1 2,500 + 1 2,500 + 1

SALES VOLUME FORECAST (Units) 0 0 45,000 0

PRODUCT COMPOSITION 20/32/ 8/29/ 5/5/5

PRODUCTION ORDER (Units) 45,000

EMERGENCY PRODUCTION LIMIT (%) 0
RESEARCH & DEVELOPMENT 450,000

PLANT CAPACITY ORDER (Units) 0

*****************************************************************************
FIRM 1: CUARENTENA CONSORCIO INDUSTRY C
CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 1-3, QUARTER 14 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 49
TIME ALLOCATION (%s) 0
EFFORT .00
SALARY + COMMISSION 2,500 + 1

SALES VOLUME FORECAST (Units) 0

PRODUCT COMPOSITION 20/32/ 8/29/ 5/5/5

PRODUCTION ORDER (Units) 45,000

EMERGENCY PRODUCTION LIMIT (%) 0
RESEARCH & DEVELOPMENT 450,000

PLANT CAPACITY ORDER (Units) 0

*****************************************************************************
FIRM 1: CUARENTENA CONSORCIO INDUSTRY C
CURRENT DIVISIONAL OPERATING STATEMENT, FIRM 1, QUARTER 14 PAGE 7
*****************************************************************************

ALL PRODUCT PRODUCT PRODUCT

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

SALES (Units) 228,974 79,464 104,510 45,000

UNFILLED ORDERS 646 0 646 0

PRICE 909 1,034 830 875

DEALER REBATES 6 0 10 10

REVENUE 208,303,422 82,165,776 86,762,646 39,375,000

PRODUCT COSTS 90,524,854 39,396,581 34,923,342 16,204,931
REBATES OFFERED 1,495,100 0 1,045,100 450,000
SALES COMMISSIONS 2,083,033 821,657 867,626 393,750
TRANSPORTATION 5,036,606 1,271,424 2,370,182 1,395,000
DUTIES & TARIFFS 3,902,468 0 2,327,469 1,574,999
─────────── ─────────── ─────────── ───────────
GROSS MARGIN 105,261,361 40,676,114 45,228,927 19,356,320

FIXED COSTS:
ADMINISTRAT O/H 421,328 106,966 214,362 100,000
ADVERTISING 9,400,000 1,200,000 6,200,000 2,000,000
CONSULTING FEES 0
CORPORATE O/H 750,000
DEPRECIATION 4,901,071
DISPOSAL SALES 305,251 0 194,412 110,839
EMERG PREMIUMS 0 0 0 0
INTRODUCTIONS 0 0 0 0
INVENTORY CHARG 282,614 282,606 8 0
MARKET RESEARCH 963,000
PROD ORDER COST 300,000 100,000 100,000 100,000
PROMOTION 10,000,000 2,000,000 6,000,000 2,000,000
REFORMULATIONS 1,000,000 0 500,000 500,000
RESEARCH & DEV 1,550,000 450,000 650,000 450,000
SALES EXPENSES 67,500
SALES SALARIES 1,942,500 412,500 1,117,500 412,500
SALES O/H 4,025,533 1,234,157 1,985,126 806,250
TOTAL FIXED COSTS 35,908,797 5,786,229 16,961,408 6,479,589
─────────── ─────────── ─────────── ───────────
OPERATING INCOME 69,352,564 34,889,885 28,267,519 12,876,731
─────────── ─────────── ─────────── ───────────
NON-OPERAT INCOME 3,682,715
LESS: TAXES 36,517,639
═══════════
NET INCOME 36,517,640
═══════════
*****************************************************************************
FIRM 1: CUARENTENA CONSORCIO INDUSTRY C
CUMULATIVE DIVISIONAL OPERATING STATEMENT, FIRM 1, QUARTER 14 PAGE 8
*****************************************************************************

ALL PRODUCT PRODUCT PRODUCT

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

SALES (Units) 442,781 146,317 211,455 85,009

UNFILLED ORDERS 646 0 646 0

PRICE 908 1,034 835 875

DEALER REBATES 6 0 9 10

REVENUE 402,345,931 151,291,778 176,671,278 74,382,875

PRODUCT COSTS 170,448,548 73,688,905 65,750,599 31,009,044
REBATES OFFERED 2,876,880 0 2,026,790 850,090
SALES COMMISSIONS 4,023,457 1,512,917 1,766,712 743,828
TRANSPORTATION 9,937,778 2,341,072 4,961,427 2,635,279
DUTIES & TARIFFS 8,189,126 0 5,213,813 2,975,313
─────────── ─────────── ─────────── ───────────
GROSS MARGIN 206,870,142 73,748,884 96,951,937 36,169,321

FIXED COSTS:
ADMINISTRAT O/H 1,010,697 231,118 564,605 214,974
ADVERTISING 18,800,000 2,400,000 12,400,000 4,000,000
CONSULTING FEES 0
CORPORATE O/H 1,500,000
DEPRECIATION 9,955,798
DISPOSAL SALES 305,251 0 194,412 110,839
EMERG PREMIUMS 0 0 0 0
INTRODUCTIONS 0 0 0 0
INVENTORY CHARG 871,320 536,821 195,211 139,288
MARKET RESEARCH 1,887,000
PROD ORDER COST 600,000 200,000 200,000 200,000
PROMOTION 20,000,000 4,000,000 12,000,000 4,000,000
REFORMULATIONS 1,000,000 0 500,000 500,000
RESEARCH & DEV 3,100,000 900,000 1,300,000 900,000
SALES EXPENSES 67,500
SALES SALARIES 3,930,000 825,000 2,317,500 787,500
SALES O/H 7,953,457 2,337,917 4,084,212 1,531,328
TOTAL FIXED COSTS 70,981,023 11,430,856 33,755,940 12,383,929
─────────── ─────────── ─────────── ───────────
OPERATING INCOME 135,889,119 62,318,028 63,195,997 23,785,392
─────────── ─────────── ─────────── ───────────
NON-OPERAT INCOME 6,472,477
LESS: TAXES 71,180,797
═══════════
NET INCOME 71,180,799
═══════════
*****************************************************************************
FIRM 1: CUARENTENA CONSORCIO INDUSTRY C
DIVISIONAL BALANCE SHEET, FIRM 1, QUARTER 14 PAGE 9
*****************************************************************************

ASSETS
──────
CASH 16,664,273
MARKETABLE SECURITIES 199,597,298
FINISHED GOODS INVENTORY:
PRODUCT 1-1 ( 5,536 Units) [$ 495.78 Per Unit] 2,744,633
PRODUCT 1-2 ( 1 Units) [$ 335.00 Per Unit] 335
PRODUCT 1-3 ( 0 Units) [$ .00 Per Unit] 0
PLANT {located in Region 1 (LATIN AM)}:
CURRENT PLANT [CAPACITY = 228,974] 171,731,687
PLANT ON ORDER FOR 1 QUARTER HENCE [CAPACITY = 0] 0
TOTAL ASSETS 390,738,226

LIABILITIES AND EQUITY

──────────────────────
LOANS 0
INITIAL (QUARTER 0) CORPORATE CAPITALIZATION 100,000,000
- DIVIDENDS PAID, PRIOR TO THIS YEAR 0
- DIVIDENDS PAID, END OF QUARTER 1 OF THIS YEAR 0
- DIVIDENDS PAID, END OF QUARTER 2 OF THIS YEAR 0
- DIVIDENDS PAID, END OF QUARTER 3 OF THIS YEAR 0
- DIVIDENDS PAID, END OF QUARTER 4 OF THIS YEAR 0
+ RETAINED EARNINGS (AFTER-TAX INCOME PRIOR TO THIS YEAR) 219,557,427
+ YEAR-TO-DATE EARNINGS (AFTER-TAX INCOME THIS YEAR) 71,180,799
TOTAL LIABILITIES AND EQUITY 390,738,226

*****************************************************************************
FINISHED GOODS INVENTORY TRANSACTIONS, FIRM 1, QUARTER 14 PAGE 9
*****************************************************************************

PRODUCT PRODUCT PRODUCT

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

BEGINNING INVENTORY 16,687 0 0

+ PRODUCTION 68,313 104,511 45,000
+ EMERGENCY PRODUCTION 0 0 0
= AVAILABLE FOR SALE 85,000 104,511 45,000
- SALES
REGION 1 (LATIN AM) -79,464 0 0
REGION 2 (U.S. ) 0 -93,543 0
REGION 3 (U.K. ) 0 0 -45,000
REGION 4 (EUROPE ) 0 0 0
REGION 5 (PACIFIC ) 0 -10,967 0
= ENDING INVENTORY 5,536 1 0
*****************************************************************************
FIRM 1: CUARENTENA CONSORCIO INDUSTRY C
CASH FLOW ANALYSIS REPORT, FIRM 1, QUARTER 14 PAGE 10
*****************************************************************************

STARTING "CASH" BALANCE (FINAL "CASH" BALANCE, QUARTER 13) 15,523,400

+ "MARKETABLE SECURITIES" (CONVERTED TO "CASH" IN QUARTER 14) 163,676,238
- "LOANS" (LIQUIDATED DURING QUARTER 14) 0
+ "FINISHED GOODS INVENTORY" INVESTMENT CHANGES
PRODUCT 1-1 (From 8,559,616 To 2,744,633) 5,814,983
PRODUCT 1-2 (From 3,888,250 To 335) 3,887,915
PRODUCT 1-3 (From 2,216,788 To 0) 2,216,788
+ "PLANT" INVESTMENT CHANGE (From 160,356,294 To 171,731,687) -11,375,393
+ "NET INCOME" 36,517,640
= INITIAL END-OF-QUARTER "CASH" BALANCE 216,261,571
- "DIVIDENDS" (PAID AT END OF QUARTER 14) 0
= ACTUAL "CASH" BALANCE (END OF QUARTER 14) 216,261,571
- OPERATING "CASH" EXCESS (TO "MARKETABLE SECURITIES") -199,597,298
+ OPERATING "CASH" DEFICIT (FROM "LOANS") 0
= FINAL "CASH" BALANCE (END OF QUARTER 14) 16,664,273

*** 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 14 PAGE 10
*****************************************************************************

MARKET SHARES (%)

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

CURRENT QUARTER 208,303,422 36,517,640 45.7 28.34 27.29

PREVIOUS QUARTER 194,042,509 34,663,159 43.4 27.95 27.01
CHANGE RATE 7.3% 5.4% 5.4% 1.4% 1.1%
*****************************************************************************
FIRM 1: CUARENTENA CONSORCIO INDUSTRY C
DETAILED VARIABLE COST CALCULATIONS, FIRM 1, QUARTER 14 PAGE 11
*****************************************************************************

PRODUCT PRODUCT PRODUCT

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

RAW MATERIAL #1 [SYNTECH] 15.00 42.00 15.00

RAW MATERIAL #2 [PLUMBO] 306.00 90.00 144.00
RAW MATERIAL #3 [GLOMP] 3.60 28.35 3.60
RAW MATERIAL #4 [TRIMICRO] 9.60 16.80 8.70
RAW MATERIAL #5 [FRALANGE] .75 .75 .75
RAW MATERIAL (Experience Curve Adjust.) -131.44 -103.91 -65.74
LABOR (Base) 30.00 30.00 30.00
LABOR (Smoothing Adjustment) 2.29 .35 3.22
LABOR (Experience Curve Adjustment) -14.53 -19.76 -14.58
PRODUCTION (Base) 60.00 60.00 60.00
PRODUCTION (Smoothing Adjustment) 2.29 .35 3.22
PRODUCTION (Experience Curve Adjustment) -28.03 -39.29 -27.74
PACKAGING 10.00 10.00 10.00
VARIABLE DEPRECIATION 90.00 90.00 90.00

SUB-TOTAL VARIABLE COSTS 355.52 205.64 260.44

COMPATIBILITY (Cost Premium Impact) 56.88 51.41 41.67

WARRANTY (Cost Premium Impact) 79.18 77.11 58.00

TOTAL VARIABLE COSTS 491.58 334.16 360.11

*****************************************************************************
PRODUCT COST ANALYSIS ESTIMATES, FIRM 1, QUARTER 15 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 1-1 195.07 100.00 47.04 473.05 1,034.00 473.05 560.95

PRODUCT 1-2 72.64 100.00 30.72 330.46 830.00 330.46 499.54
PRODUCT 1-3 103.15 100.00 48.71 348.26 875.00 348.26 526.74

*** 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: CUARENTENA CONSORCIO INDUSTRY C
SALES FORECASTING ACCURACY REPORT, FIRM 1, QUARTER 14 PAGE 12
*****************************************************************************

MARKET SALES ACTUAL UNFILLED ACTUAL + ACCURACY

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

1-1 1 85,000 79,464 0 79,464 93.03

1-2 2 90,000 93,543 493 94,036 95.71
1-2 5 10,000 10,967 153 11,120 89.93
1-3 3 45,000 45,000 0 45,000 100.00
AVERAGE (Current Quarter) 94.67

ON 9 SALES VOLUME FORECASTS IN THE CURRENT YEAR:

CUMULATIVE (Total) FORECASTING SCORE POINTS = 789.30
AVERAGE FORECASTING SCORE (Per Forecast) = 87.70

*** 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: CUARENTENA CONSORCIO INDUSTRY C
MARKETING RESEARCH BILLINGS, FIRM 1, QUARTER 14 PAGE 13
*****************************************************************************

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

11 CUSTOMER BRAND AWARENESS 21,000 1 21,000

16 OPERATING STATISTICS REPORT 25,000 1 25,000
17 BRAND QUALITY RATINGS 15,000 1 15,000
18 PATENT SEARCH 1,000 2 2,000
19 COMPETITIVE INFORMATION - BALANCE SHEETS 20,000 5 100,000
21 BRAND PERCEPTUAL RATINGS 50,000 1 50,000
24 MARKET SHARES 2,500 1 2,500
35 ADVERTISING PROGRAM EXPERIMENT 15,000 9 135,000
36 COMPETITIVE INFORMATION - BRAND PROFILES 10,000 29 290,000
38 PROMOTION EXPERIMENT 15,000 6 90,000
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 51 51,000

TOTAL 963,000

*** NOTE ***

This marketing research billing report is based on marketing research pre-
ordered for quarter 13 and billed in connection with quarter 14. Marketing
research study premium rates, in connection with syndicated and custom
marketing research, are based on quarter 13.
*****************************************************************************
FIRM 1: CUARENTENA CONSORCIO INDUSTRY C
FINANCIAL AND OPERATING STATEMENT MESSAGES, FIRM 1, QUARTER 14 PAGE 14
*****************************************************************************

EMERGENCY PRODUCTION ACTIVITY

No products have emergency production this quarter.

INVENTORY LEVELS
All products have very small (or zero) inventory levels.

PRODUCT FORMULATION STATUS

Product 1-1 has formulation 20/68/ 8/32/ 5/5/5 and patent zone of 3.
Product 1-2 has formulation 56/20/63/56/ 5/6/6 and patent zone of 4.
Product 1-3 has formulation 20/32/ 8/29/ 5/5/5 and patent zone of 4.

CUMULATIVE PRODUCTION EXPERIENCE WITH CURRENT FORMULATION

Product 1-1 has cumulative production experience of 505,463 units.
Product 1-2 has cumulative production experience of 1,707,880 units.
Product 1-3 has cumulative production experience of 457,562 units.

SALES FORECASTING ACCURACY SCORES

Product 1-2, region 2, sales forecasting accuracy is excellent [ 95.71].
Product 1-3, region 3, sales forecasting accuracy is excellent [100.00].

REGIONAL GROSS MARGINS

All products in all regions have contribution margins greater than 25%.

SPECIAL NOTES, REMINDERS, AND WARNING MESSAGES

Product 1-2, area 2, has unfilled orders of 493 units:
With total potential sales volume of 93,543 units {SALES (Units)
plus UNFILLED ORDERS} and an emergency production limit of 0%, a
maximum of 0 units of emergency production are possible for
sale in this market region.
Product 1-2, area 5, has unfilled orders of 153 units:
With total potential sales volume of 10,967 units {SALES (Units)
plus UNFILLED ORDERS} and an emergency production limit of 0%, a
maximum of 0 units of emergency production are possible for
sale in this market region.
*****************************************************************************
FIRM 1: CUARENTENA CONSORCIO INDUSTRY C
SPECIAL BRANDMAPS NOTICES, FIRM 1, QUARTER 14 PAGE 15
*****************************************************************************

BRANDS: ONLY SOME BRANDS ARE AVAILABLE FOR USE AT THIS TIME
Brand 1 is available for use.
Brand 2 is available for use.
Brand 3 is available for use.
Brand 4 is not available for use.

CAPACITY: AUTOMATIC CAPACITY MANAGEMENT EXISTS IN BRANDMAPS

BRANDMAPS is managing capacity ordering decisions. Appropriate amounts
of capacity are automatically added to or deleted from your current
capacity each quarter to ensure that current capacity is always equal to
current sales volume. (There are no penalties for these instantaneous
capacity adjustments, although such capacity adjustments involve cash
flows equal to the current value of plant capacity orders.) Your firm is
operating at exactly 100% capacity each quarter.

DECISIONS: SOME DECISION VARIABLES ARE AUTOMATICALLY CONTROLLED OR FIXED

Reformulation bidding decisions are fixed and may not be changed.
Capacity ordering decisions are controlled automatically by BRANDMAPS.
Emergency production limit decisions are fixed and may not be changed.

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%