Battery Life Sensor Size Latency

Desired Actual Desired Actual Desired Actual

Quarter A B C D A B C D A B C D
Y1, Q1 5.99 2.7 6.75 2.02 4.5 63 39 36 72 60 10.2 9.8 4 12 10
Y1, Q2 6.01 2.71 6.78 2.02 4.52 62.7 38.8 35.8 72 60.1 10.1 9.8 4 12 10
Y1, Q3 6.04 2.73 6.82 2.02 4.55 62.4 38.6 35.6 72 60.1 10.1 9.7 4 12 10
Y1, Q4 6.08 2.74 6.85 2.02 4.57 62.1 38.4 35.5 72 60.2 10 9.7 3.9 12 10
Y2, Q1 6.11 2.75 6.89 2.02 4.76 61.7 38.2 35.3 72 60.7 10 9.6 3.9 12 9.4
Y2, Q2 6.14 2.77 6.92 2.02 4.8 61.4 38 35.1 72 60.1 9.9 9.6 3.9 12 8.8
Y2, Q3 6.17 2.78 6.96 2.02 4.73 61.1 37.8 34.9 72 58.4 9.9 9.5 3.9 12 8.1
Y2, Q4 6.2 2.8 6.99 2.02 4.66 60.8 37.7 34.8 72 56.7 9.8 9.5 3.9 12 7.7
Y3, Q1 6.23 2.81 7.02 2.02 4.63 60.5 37.5 34.6 72 55.9 9.8 9.4 3.8 12 7.3
Y3, Q2 6.26 2.82 7.06 2.02 4.59 60.2 37.3 34.4 72 56 9.8 9.4 3.8 12 7.2
Y3, Q3 6.29 2.84 7.1 2.02 4.55 59.9 37.1 34.2 72 55.7 9.7 9.3 3.8 12 7
Y3, Q4 6.32 2.85 7.13 2.02 4.52 59.6 36.9 34.1 72 55.5 9.7 9.3 3.8 12 6.7
Y4, Q1 6.35 2.87 7.17 2.02 4.44 59.3 36.7 33.9 72 54.7 9.6 9.2 3.8 12 6.5
Y4, Q2 6.39 2.88 7.2 2.02 4.37 59 36.5 33.7 72 54 9.6 9.2 3.7 12 6.3
Y4, Q3 6.42 2.9 7.24 2.02 4.28 58.7 36.4 33.6 72 52.8 9.5 9.1 3.7 12 5.9
Y4, Q4 6.45 2.91 7.27 2.02 4.24 58.4 36.2 33.4 72 52.1 9.5 9.1 3.7 12 5.4
 Price
Desired / Actual
A B C D
$124.96 / $124.96 $130.64 / $130.64 $163.58 / $136.32 $83.50 / $119.28
$124.34 / $124.96 $129.99 / $130.64 $162.77 / $136.32 $83.50 / $119.28
$123.71 / $124.96 $129.34 / $130.64 $161.95 / $136.32 $83.50 / $119.28
$123.09 / $121.44 $128.69 / $126.96 $161.14 / $132.48 $83.50 / $115.92
$122.48 / $122.32 $128.05 / $127.88 $160.34 / $133.44 $83.50 / $116.76
$121.87 / $122.32 $127.41 / $127.88 $159.54 / $133.44 $83.50 / $116.76
$121.26 / $122.32 $126.77 / $127.88 $158.74 / $133.44 $83.50 / $116.76
$120.65 / $123.20 $126.14 / $128.80 $157.94 / $134.40 $83.50 / $117.60
$120.05 / $123.20 $125.50 / $128.80 $157.15 / $134.40 $83.50 / $117.60
$119.45 / $123.20 $124.88 / $128.80 $156.37 / $133.00 $83.50 / $117.60
$118.85 / $123.20 $124.25 / $128.80 $155.59 / $134.40 $83.50 / $117.60
$118.26 / $118.80 $123.63 / $124.20 $154.81 / $129.60 $83.50 / $113.40
$117.67 / $113.10 $123.01 / $119.60 $154.03 / $124.80 $83.50 / $109.20
$117.08 / $114.84 $122.40 / $121.44 $153.26 / $126.72 $83.50 / $110.88
$116.49 / $114.84 $121.79 / $121.44 $152.50 / $126.72 $83.50 / $110.88
$115.91 / $114.84 $121.18 / $121.44 $151.74 / $126.72 $83.50 / $110.88
 Y1, Q1 Y1, Q2 Y1, Q3 Y1, Q4
Segment A Sales Force Emphasis 25% 25% 25% 45%
Segment B Sales Force Emphasis 25% 25% 25% 20%
Segment C Sales Force Emphasis 25% 25% 25% 30%
Segment D Sales Force Emphasis 25% 25% 25% 5%
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 1=50K 11 11 11 11
Spending on Small Customers 50% 50% 50% 20%
Spending to Retain Large Customers 50% 50% 50% 50%
Integrated Marketing Communication and Training 80,000 80,000 80,000 40,000
Integrated Marketing Communication and Training 80,000 80,000 80,000 40,000
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 40000
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
Net Income 390,994 343,543 330,795 327,450
Cumulative Profit 0 0 0 327,450
Revenue from Large Customers 2,370,194 2,282,032 2,254,913 2,481,855
Revenue from Small Customers 890,340 882,008 890,749 570,096
Total Revenue 3,260,534 3,164,040 3,145,662 3,051,951
Variable Cost 1,859,119 1,810,076 1,804,446 1,754,080
Gross Margin 1,401,415 1,353,964 1,341,216 1,297,871
SG&A Expense 630,000 630,000 630,000 590,000
R&D Expense 120,000 120,000 120,000 120,000
Marketing Research Expenditures
Other Operating Expense 130,421 130,421 130,421 130,421
Total Operating Expense 1,010,421 1,010,421 1,010,421 970,421
Net Income 390,994 343,543 330,795 327,450
Cumulative Profit 0 0 0 327,450
Y2, Q1 Y2, Q2 Y2, Q3 Y2, Q4 Y3, Q1 Y3, Q2 Y3, Q3 Y3, Q4 Y4, Q1 Y4, Q2
45% 45% 45% 45% 45% 45% 45% 45% 45% 45%
20% 20% 20% 25% 25% 25% 25% 25% 25% 25%
30% 30% 30% 25% 25% 25% 25% 25% 25% 25%
5% 5% 5% 5% 5% 5% 5% 5% 5% 5%
142 142 142 142 140 135 135 135 135 138
12% 12% 12% 12% 12% 12% 14% 14% 14% 14%
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
4% 4% 4% 4% 4% 4% 0% 0% 0% 0%
17% 19% 20% 20% 20% 20% 20% 20% 20% 20%
12% 12% 12% 12% 13% 13% 13% 13% 13% 13%
11 11 11 11 11 11 11 11 11 11
20% 20% 20% 20% 0% 0% 0% 0% 0% 0%
50% 50% 50% 50% 50% 50% 50% 50% 50% 50%
60,000 60,000 60,000 60,000 60,000 30,000 30,000 30,000 30,000 50,000
60,000 60,000 60,000 60,000 60,000 30,000 30,000 30,000 30,000 50,000
50,000 50,000 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
40000 20000 20000 30,000 30,000 15,000 15,000 25,000 50,000 80,000
40,000 40,000 30,000 30,000 30000 15000 40000 40000 40,000 60,000
0 20,000 30,000 30,000 30,000 20,000 20,000 20,000 20,000 20,000
60,000 60,000 50,000 50,000 50,000 30,000 30,000 30,000 30,000 30,000
0 0 0 10,000 10,000 10,000 10,000 10,000 10,000 0
398,453 436,887 459,592 438,212 425,566 454,821 419,114 418,156 402,717 387,371
725,903 1,162,791 1,622,383 2,060,594 2,486,160 2,940,981 3,360,094 3,778,250 4,180,967 4,568,338
2,910,308 3,218,592 3,363,759 3,449,443 3,574,619 3,650,938 3,728,551 3,824,386 3,922,303 4,028,841
454,709 362,055 330,021 291,419 292,544 282,014 286,552 299,443 315,311 323,415
3,365,016 3,580,647 3,693,780 3,740,862 3,867,162 3,932,953 4,015,103 4,123,828 4,237,614 4,352,256
1,976,142 2,153,338 2,253,766 2,302,229 2,441,175 2,597,710 2,690,568 2,790,251 2,894,476 2,944,463
1,388,875 1,427,309 1,440,013 1,438,633 1,425,987 1,335,242 1,324,535 1,333,577 1,343,138 1,407,792
610,000 610,000 610,000 610,000 610,000 580,000 580,000 580,000 580,000 600,000
100,000 120,000 110,000 120,000 120,000 75,000 100,000 100,000 100,000 110,000

130,421 130,421 130,421 130,421 130,421 130,421 130,421 130,421 130,421 130,421
990,421 990,421 980,421 1,000,421 1,000,421 880,421 905,421 915,421 940,421 1,020,421
398,453 436,887 459,592 438,212 425,566 454,821 419,114 418,156 402,717 387,371
725,903 1,162,791 1,622,383 2,060,594 2,486,160 2,940,981 3,360,094 3,778,250 4,180,967 4,568,338
Y4, Q3 Y4, Q4
45% 45%
25% 25%
25% 25%
5% 5%
136 136
14% 14%
8% 8%
0% 0%
20% 20%
10% 10%
11 11
0% 0%
50% 50%
50,000 50,000
50,000 50,000
50,000 50,000
0 0
80,000 80,000
60,000 60,000
20,000 20,000
30,000 30,000
0 0
395,831 405,255
4,964,169 5,369,424
4,271,962 4,437,332
364,984 376,309
4,636,945 4,813,641
3,220,693 3,387,965
1,416,252 1,425,676
600,000 600,000
110,000 110,000

130,421 130,421
1,020,421 1,020,421
395,831 405,255
4,964,169 5,369,424
 Y1, Q1 Y1, Q2 Y1, Q3 Y1, Q4
Segment A Sales Force Emphasis 25% 25% 25% 50%
Segment B Sales Force Emphasis 25% 25% 25% 20%
Segment C Sales Force Emphasis 25% 25% 25% 20%
Segment D Sales Force Emphasis 25% 25% 25% 10%
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% 50% 25%
Spending to Retain Large Customers 50% 50% 50% 40%
Integrated Marketing Communication and Training 80,000 80,000 80,000 80,000
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 40,000
Manufacturing Efficiency Improvement 0 0 0 0
Sensor Size Feature Spending 60,000 60,000 60,000 40,000
Latency Reduction Spending 0 0 0 0
Net Income 390,994 343,543 330,795 362,953
Cumulative Profit 0 0 0 362,953
Revenue from Large Customers 2,370,194 2,282,032 2,254,913 2,534,728
Revenue from Small Customers 890,340 882,008 890,749 597,381
Total Revenue 3,260,534 3,164,040 3,145,662 3,132,109
Variable Cost 1,859,119 1,810,076 1,804,446 1,798,734
Gross Margin 1,401,415 1,353,964 1,341,216 1,333,374
SG&A Expense 630,000 630,000 630,000 630,000
R&D Expense 120,000 120,000 120,000 80,000
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 1,010,421 970,421
Net Income 390,994 343,543 330,795 362,953
Cumulative Profit 0 0 0 362,953
Y2, Q1 Y2, Q2 Y2, Q3 Y2, Q4 Y3, Q1 Y3, Q2 Y3, Q3 Y3, Q4 Y4, Q1 Y4, Q2
50% 50% 50% 50% 50% 50% 50% 85% 50% 50%
20% 20% 20% 20% 15% 15% 20% 5% 25% 25%
20% 20% 20% 20% 30% 30% 25% 5% 20% 20%
10% 10% 10% 10% 5% 5% 5% 5% 5% 5%
142 142 142 142 142 142 142 142 142 142
12% 12% 12% 13% 13% 14% 14% 14% 14% 14%
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
4% 4% 4% 4% 4% 4% 4% 4% 4% 4%
18% 18% 18% 19% 19% 20% 20% 20% 20% 20%
12% 12% 12% 12% 12% 13% 13% 13% 13% 13%
11 11 11 11 10 10 10 10 11 11
25% 25% 25% 25% 25% 10% 10% 10% 10% 10%
40% 35% 35% 35% 35% 40% 40% 30% 30% 70%
80,000 80,000 90,000 90,000 110,000 110,000 110,000 100,000 100,000 100,000
80,000 80,000 90,000 90,000 110,000 110,000 110,000 100,000 100,000 100,000
50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
0 0 0 0 0 20,000 20,000 0 40,000 40,000
0 0 20,000 20,000 40,000 40,000 40,000 40,000 40,000 40,000
40,000 40,000 20,000 20,000 30,000 30,000 30,000 30,000 30,000 30,000
0 0 0 0 0 0 0 0 0 0
40,000 40,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000
10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
475,911 495,324 483,069 458,277 494,707 447,865 435,086 455,719 359,316 438,511
838,864 1,334,188 1,817,257 2,275,535 2,770,241 3,218,106 3,653,193 4,108,912 4,468,228 4,906,739
3,046,757 3,257,105 3,411,393 3,523,037 3,745,700 3,889,923 3,969,193 4,015,507 4,098,499 4,451,205
489,967 404,855 384,395 338,255 356,228 319,107 311,258 318,874 336,668 359,206
3,536,724 3,661,960 3,795,788 3,861,292 4,101,928 4,209,030 4,280,451 4,334,381 4,435,168 4,810,412
2,080,391 2,186,215 2,292,298 2,382,593 2,566,800 2,700,744 2,784,943 2,858,241 2,965,430 3,261,479
1,456,333 1,475,745 1,503,491 1,478,699 1,535,128 1,508,286 1,495,508 1,476,140 1,469,738 1,548,933
630,000 630,000 640,000 640,000 610,000 610,000 610,000 600,000 650,000 650,000
90,000 90,000 90,000 90,000 100,000 100,000 100,000 100,000 100,000 100,000
130,000 130,000 160,000 160,000 200,000 220,000 220,000 190,000 230,000 230,000
130,421 130,421 130,421 130,421 130,421 130,421 130,421 130,421 130,421 130,421
980,421 980,421 1,020,421 1,020,421 1,040,421 1,060,421 1,060,421 1,020,421 1,110,421 1,110,421
475,911 495,324 483,069 458,277 494,707 447,865 435,086 455,719 359,316 438,511
838,864 1,334,188 1,817,257 2,275,535 2,770,241 3,218,106 3,653,193 4,108,912 4,468,228 4,906,739
Y4, Q3 Y4, Q4
50% 50%
25% 25%
20% 20%
5% 5%
142 142
14% 14%
8% 8%
4% 4%
20% 20%
13% 13%
11 11
10% 10%
70% 70%
100,000 100,000
100,000 100,000
50,000 50,000
40,000 40,000
40,000 40,000
30,000 30,000
0 0
60,000 60,000
10,000 10,000
488,751 500,087
5,395,491 5,895,578
4,692,892 4,879,706
423,409 437,079
5,116,301 5,316,785
3,517,128 3,706,276
1,599,173 1,610,509
650,000 650,000
100,000 100,000
230,000 230,000
130,421 130,421
1,110,421 1,110,421
488,751 500,087
5,395,491 5,895,578
 Y1, Q1 Y1, Q2 Y1, Q3 Y1, Q4 Y2, Q1 Y2, Q2
Segment A Sales Force Emphasis 25% 25% 25% 30% 30% 30%
Segment B Sales Force Emphasis 25% 25% 25% 18% 18% 18%
Segment C Sales Force Emphasis 25% 25% 25% 32% 32% 32%
Segment D Sales Force Emphasis 25% 25% 25% 20% 20% 20%
List Price 142 142 142 142 142 142
Segment A Discounts 12% 12% 12% 12% 12% 12%
Segment B Discounts 8% 8% 8% 8% 8% 8%
Segment C Discounts 4% 4% 4% 4% 4% 4%
Segment D Discounts 16% 16% 16% 16% 16% 16%
Distributor Discounts 12% 12% 12% 12% 12% 12%
Sales Force 11 11 11 10 10 11
Spending on Small Customers 50% 50% 50% 30% 30% 30%
Spending to Retain Large Customers 50% 50% 50% 70% 70% 70%
Integrated Marketing Communication and Trai 80,000 80,000 80,000 90,000 90,000 120,000
Integrated Marketing Communication and Trai 80,000 80,000 80,000 90,000 90,000 120,000
Spending on Market Research 50,000 50,000 50,000 50,000 50,000 50,000
Social Media Persuasion Spending 0 0 0 10,000 10,000 10,000
Direct Customer Communication 0 0 0 10,000 10,000 10,000
Battery Life Feature Spending 60,000 60,000 60,000 90,000 90,000 90,000
Manufacturing Efficiency Improvement 0 0 0 50,000 50,000 50,000
Sensor Size Feature Spending 60,000 60,000 60,000 0 0 0
Latency Reduction Spending 0 0 0 0 0 10,000
Net Income 390,994 343,543 330,795 466,769 625,617 718,985
Cumulative Profit 0 0 0 466,769 1,092,386 1,811,371
Revenue from Large Customers 2,370,194 2,282,032 2,254,913 2,839,864 3,423,163 4,120,601
Revenue from Small Customers 890,340 882,008 890,749 655,140 541,839 469,221
Total Revenue 3,260,534 3,164,040 3,145,662 3,495,004 3,965,001 4,589,822
Variable Cost 1,859,119 1,810,076 1,804,446 2,007,814 2,318,963 2,730,415
Gross Margin 1,401,415 1,353,964 1,341,216 1,487,190 1,646,039 1,859,407
SG&A Expense 630,000 630,000 630,000 590,000 590,000 670,000
R&D Expense 120,000 120,000 120,000 140,000 140,000 150,000
Marketing Research Expenditures 130,000 130,000 130,000 160,000 160,000 190,000
Other Operating Expense 130,421 130,421 130,421 130,421 130,421 130,421
Total Operating Expense 1,010,421 1,010,421 1,010,421 1,020,421 1,020,421 1,140,421
Net Income 390,994 343,543 330,795 466,769 625,617 718,985
Cumulative Profit 0 0 0 466,769 1,092,386 1,811,371
Y2, Q3 Y2, Q4 Y3, Q1 Y3, Q2 Y3, Q3 Y3, Q4 Y4, Q1 Y4, Q2 Y4, Q3
30% 30% 30% 30% 30% 30% 35% 35% 35%
18% 18% 18% 18% 18% 18% 18% 18% 18%
32% 32% 32% 32% 32% 32% 32% 32% 32%
20% 20% 20% 20% 20% 20% 15% 15% 15%
142 142 142 142 142 142 142 142 142
12% 12% 12% 12% 12% 12% 12% 12% 12%
8% 8% 8% 8% 8% 8% 8% 8% 8%
4% 4% 4% 4% 4% 4% 4% 4% 4%
17% 17% 18% 18% 19% 19% 19% 20% 20%
12% 13% 13% 13% 13% 13% 13% 13% 12%
12 12 12 12 12 12 12 14 13
30% 30% 20% 20% 20% 20% 20% 20% 20%
70% 70% 70% 70% 70% 70% 70% 70% 70%
130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000
130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000
50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
10,000 10,000 10,000 10,000 10,000 10,000 10,000 60,000 60,000
100,000 100,000 50,000 100,000 100,000 120,000 120,000 120,000 120,000
50,000 50,000 50,000 50,000 50,000 50,000 50,000 0 50,000
0 0 100,000 100,000 100,000 100,000 100,000 0 0
10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
836,998 934,840 847,251 702,530 647,995 543,457 449,281 342,241 277,602
2,648,369 3,583,209 4,430,460 5,132,990 5,780,985 6,324,442 6,773,723 7,115,963 7,393,565
4,765,744 5,175,867 5,286,194 5,326,428 5,476,509 5,529,341 5,552,126 5,595,209 5,555,023
485,212 484,258 431,465 368,147 353,094 354,630 363,009 348,573 358,362
5,250,956 5,660,125 5,717,659 5,694,575 5,829,602 5,883,971 5,915,135 5,943,782 5,913,384
3,193,537 3,504,864 3,599,987 3,671,624 3,861,186 4,000,093 4,125,433 4,261,120 4,295,361
2,057,419 2,155,261 2,117,673 2,022,951 1,968,416 1,883,878 1,789,702 1,682,662 1,618,023
730,000 730,000 730,000 730,000 730,000 730,000 730,000 830,000 780,000
160,000 160,000 210,000 260,000 260,000 280,000 280,000 130,000 180,000
200,000 200,000 200,000 200,000 200,000 200,000 200,000 250,000 250,000
130,421 130,421 130,421 130,421 130,421 130,421 130,421 130,421 130,421
1,220,421 1,220,421 1,270,421 1,320,421 1,320,421 1,340,421 1,340,421 1,340,421 1,340,421
836,998 934,840 847,251 702,530 647,995 543,457 449,281 342,241 277,602
2,648,369 3,583,209 4,430,460 5,132,990 5,780,985 6,324,442 6,773,723 7,115,963 7,393,565
Y4, Q4
35%
18%
32%
15%
142
12%
8%
4%
20%
12%
13
20%
70%
130,000
130,000
50,000
10,000
60,000
40,000
0
0
10,000
385,451
7,779,016
5,591,228
355,192
5,946,420
4,350,547
1,595,873
780,000
50,000
250,000
130,421
1,210,421
385,451
7,779,016