Industry Report for Period 5

Units                       Change    Dollars                         Change
-----                       ------    -------                         ------
Total Orders        5270        7%    Industry Sales         $232877      0%
Total Produced      5949       14%    Average Price          $ 44.25     -5%
Total Sold          5263        7%    Total Production       $104207     22%
Total Capacity      6771       12%    Avg Pdtn Cost          $ 17.52      7%
Inventory           2636       35%    Avg Total Cost         $ 30.40     10%

Productivity                Change    Dollars                         Change
------------                ------    -------                         ------
Employment           737        2%    Prime Rate                 11%      0%
Sales/Employee  $    316        0%    Loan Limit             $ 30000      0%
Units/Employee      8.07       12%    Tax Rate                   25%      0%
Cap. Investment $ 298923       10%    Tax Paid in Period     $ 18179    -23%
Capacity Util.       88%        1%    Tax Paid to Date       $ 89381     26%

          BSEU9  WARRIOR  LATINO7   CYBER2 KOSTROMA EXPRESSO
       -------- -------- -------- -------- -------- --------
Sales   $ 55391  $ 43392  $ 44010  $ 35475  $ 40893  $ 13716
Profit  $ 14663  $  8394  $ 14029  $  9111  $  5617  $  2722
Price   $    41  $    48  $    45  $    43  $    43  $    54
RetErn  $ 56001  $ 51856  $ 56446  $ 35325  $ 26397  $ 30980
Un Shr      26%      17%      19%      16%      18%       5%
MPI         316      288      307      209      161      167

Prices are down and costs are up. Profits are lower.

Despite lower prices, orders and sales are less than production.
Inventories are up. Which direction are price and production likely
to go in the next period?

Capacity utilization is over 80%, the most efficient level. Since
inventory increased this period, where do you expect capacity
utilization to be in the next period?

With capital investment up, there will be more capacity in the industry
next period. For companies that invested, efficient operation will
require higher production but will lower their cost per unit.

CYBER2 has exceeded its credit limit. Its decisions must be approved
by the teacher or consultant.