Thermostar

A Forward-Looking Analysis

Prepared by Try L. MullerBusiness Analytics – Say It With Charts

Sales Per Product (20 Quarters)

PRODUCT GAMMA IS DOES NOT EXHIBIT THE SAME RETURNS AS PRODUCTS ALPHA AND BETA

$0

$2

$4

$6

$8

$10

$12

$14

$16

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Quarter

Sale

s (K

)

Alpha

Beta

Gamma

Production at 100,000 Units

Alpha$4,130,000.00 Beta

$3,840,000.00

Gamma$2,030,000.00

$-

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

$3,500,000.00

$4,000,000.00

$4,500,000.00

1

To

tal E

xp

ec

t Sa

les

Product

Gamma's Contribution To Total Sales Is Just At 20%

Alpha

Beta

Gamma

A Positive Relationship Between Quantity Produced and Total

CostA Positive Relationship Between Total Cost and Quanity Shows

Efficiency In Operation

$-$0.20$0.40$0.60$0.80$1.00$1.20$1.40$1.60$1.80

0 10 20 30 40

Quanity Produced

To

tal C

os

t in

($

M)

Recommendation

0%

20%

40%

60%

80%

100%

Percent of Sales

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Balancing Out Production To Optimize Sales Over The Next 4 Quarters

Gamma

Beta

Alpha