PRODUCT DECISIONS

Product Street Neo (Leisure) Street Junior (Kids)rollover 5 6 5 6State Normal Normal Normal NormalDesign ProStreet Neo Street NeoStreet JuniStreet juniorRetail Price$400 $400 $349 $349Advertisin $4,013,100$1,218,576$1,959,600$1,208,000PR Expendi$1,375,920$808,944 $426,000 $346,000PlannedPro 50,000 39,000 80,000 40,000Finished G 9 9 19 10

PRODUCT MEDIA PROMOTION DECISIONS

Product Street NeoStreet NeoStreet NeoStreet NeoStreet NeoStreet NeoStreet Junirollover 5 5 5 6 6 6 5Media TV Internet MagazinesTV Internet MagazinesTVProduct Ad$2,484,300$955,500 $573,300 $754,416 $290,160 $174,000 $1,371,720Product PR$851,760 $327,600 $196,560 $502,944 $190,000 $116,000 $298,200

Cost of Goods Manufactured Report

Product Street NeoStreet JuniStreet NeoStreet Juniorrollovr 5 5 6 6Prod DevptStreet NeoStreet JuniStreet NeoStreet Junior

Production 42,916 40,004 34,066 22,622

Materials CostsDirect Raw$1,550,255$1,401,626$1,230,566$792,610

Materials $153,143 $138,461 $150,905 $97,198($0.10 per DMat$)

Labor CostsStandard D$442,930 $400,465 $351,590 $226,460Direct Labo($43,650) ($39,466) ($34,215) ($22,038)(due to effectiveness & wage levels)Direct Labo$399,280 $360,999 $317,375 $204,423

Standard D 35,434 32,037 28,127 18,117Labor Over$784,048 $708,878 $881,986 $568,089($22.13 per DLHr)

Machine CostsStandard M 26,576 24,028 21,095 13,588Machine Ov$795,784 $719,490 $1,349,473$869,199

TOTAL CO $3,682,510$3,329,454$3,930,305$2,531,519

Avg Manufa$85.81 $83.23 $115.37 $111.91

Gross Margin Report

Product Street NeoStreet JuniStreet NeoStreet Juniorrollovr 5 6 5 6Sales Units 38,368 30,873 34,719 28,816Retail Price$400 $349 $400 $349Average Wh$248 $216 $238 $208

Sales Reve$9,515,264$6,680,300$8,273,583$5,990,672

Opening Fi$246,321 $286,152 $592,500 $994,825Plus: Cost $3,682,510$3,329,454$3,930,305$2,531,519

$3,928,831$3,615,606$4,522,805$3,526,343Less: Closi $592,500 $994,825 $721,314 $644,574

Cost of Go $3,336,331$2,620,781$3,801,492$2,881,770

GROSS MA$6,178,933$4,059,518$4,472,091$3,108,902

Cost Drivers

Product Street NeoStreet JuniStreet NeoStreet JuniorRolovr 5 5 6 6Standard Product CostsPrime cost $46 $45 $46 $45Direct mate$36.12 $35.04 $36.12 $35.04Direct labo 0.83 0.8 0.83 0.8Direct labo$10.32 $10.01 $10.32 $10.01Machine ho 0.62 0.6 0.62 0.6

Actual totalsSales volu 38,368 30,873 34,719 28,816Production 42,916 40,004 34,066 22,622

Units Insp 6,932 6,461 6,845 4,546Inspection $536,544 $485,110 $529,878 $341,282

Units Rewo 406 379 161 106Rework Cos$18,486 $16,726 $7,338 $4,696

Warranty C 193 156 64 53Warranty C$47,975 $33,681 $15,349 $11,114

Number of 173 162 137 91

Raw Materi$67,332 $66,212 $83,425 $65,827Finished G $419,410 $640,488 $656,907 $819,699

RO5

Kids Firm Sales Retail PriceAwarenessPR DistributioQualityAdv1 Jazzybikes 5,716 $1,500 0.33 0.02 0.42 0.6Adv2 StreetHaw 14,449 $1,800 0.33 0.17 0.46 0.81Adv3 Revels 13,294 $1,900 0.34 0.08 0.64 0.93Adv4 Trailblazer 24,043 $1,900 0.35 0.2 0.44 0.81Adv5 Street Ride 17,573 $1,800 0.41 0.21 0.49 0.85Adv6 Spykar 11,024 $2,000 0.32 0.15 0.44 0.71Adv7 Alacrity Bi 12,258 $1,900 0.37 0.13 0.26 0.61adventure Jazzybikes 9,749 $1,750 0.4 0.16 0.42 0.6Street Sto Street Ride 17,748 $1,850 0.41 0.21 0.49 0.85SpykAd2 Spykar 12,783 $2,000 0.34 0.19 0.44 0.71SH ADV 2 StreetHaw 13,331 $2,100 0.33 0.17 0.46 0.81AdventurerJazzybikes 3,019 $2,000 0.37 0 0.42 0.6adv03 Revels 12,999 $2,150 0.35 0.08 0.64 0.93Average (Weighted) 167,986 $1,905 0.36 0.16 0.47 0.79

Leisurelei1 Jazzybikes 21,933 $425 0.5 0.05 0.43 0.6leisure Revels 33,742 $460 0.48 0.2 0.65 0.93SpykLei Spykar 36,995 $450 0.44 0.56 0.38 0.71leisure007 Alacrity Bi 17,528 $450 0.45 0.07 0.28 0.61Street NeoStreet Ride 38,368 $400 0.5 0.19 0.46 0.85lessy Trailblazer 18,224 $430 0.35 0.05 0.49 0.81Average (Weighted) 166,790 $435 0.46 0.23 0.46 0.77

Street JuniStreet JuniStreet JuniStreet JuniStreet Junior5 5 6 6 6

Internet MagazinesTV Internet Magazines$293,940 $293,940 $846,000 $181,000 $181,000$63,900 $63,900 $242,000 $52,000 $52,000

RO6

Prev Deliv Current DeProduct Specs Kids1 1 0.52 Kidzee Trailblazer 34,260 $320 0.41 0.091 1 0.52 kids101 Jazzybikes 32,611 $350 0.49 0.08

0.63 1 0.52 KIDS StreetHaw 36,938 $340 0.39 0.191 1 0.89 kids03 Revels 28,382 $340 0.43 0.121 1 0.52 Street Jun Street Ride 28,816 $349 0.4 0.031 1 0.52 kids007 Alacrity Bi 36,032 $350 0.47 0.211 1 0.52 Kids003 Revels 20,750 $370 0.37 0.061 1 0.58 SpyKid Spykar 33,281 $375 0.37 0.191 1 0.6 Average (Weighted) 251,070 $348 0.42 0.131 1 0.631 1 0.871 1 0.881 1 0.9

0.97 - 0.66

1 1 0.89 Leisure1 1 0.89 lei1 Jazzybikes 15,649 $450 0.5 0.031 1 0.89 leisure Revels 28,971 $430 0.44 0.131 1 0.83 SpykLei Spykar 45,299 $430 0.48 0.531 1 0.94 leisure007 Alacrity Bi 21,185 $410 0.45 0.071 1 0.96 Street NeoStreet Ride 34,719 $400 0.43 0.171 - 0.9 lessy Trailblazer 17,481 $430 0.38 0.05

Leisure SH StreetHaw 23,516 $400 0.33 0.12

Average (Weighted) 186,820 $420 0.44 0.21

0.39 0.88 1 1 0.90.34 0.93 1 1 0.840.41 0.89 1 1 0.950.68 0.91 1 1 0.840.63 0.94 1 1 0.90.32 0.83 1 1 0.810.68 0.91 1 1 0.950.49 0.85 1 1 0.950.47 0.89 1 - 0.89

0.32 0.93 1 1 0.870.66 0.91 1 1 0.870.51 0.85 1 1 0.980.32 0.83 1 1 0.840.64 0.94 1 1 0.930.39 0.88 1 1 0.980.41 0.89 1 1 0.98

0.5 0.89 1 - 0.93