Weatherwear estimates that every unit sold and returned due to defect costs the company $200 in profits. Approximately what would Weatherwear’s total profits have been in Year 5 if all units sold and returned due to defect had been eliminated
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HERE IS YOUR ANSWER MATE.....;
Year 3 Year 2 Year 1 Quality Control Summary FINANCIAL HIGHLIGHTS for Weatherwear, Inc. Year 5 Year 4 Operating Income - $ 22.2 $ 24.9 $ Catalogue Division.......... $ 44.4 $ 49.1 $ Internet Division.......... $ 7.4 $ 1.5 $ Total $ 74.0 $ 75.5 $ 23.1 $ 44.8 $ . $ 67.9 $ 19.6 $ 41.6 $ . $ 61.2 $ 16.5 38.6 .. 55.1 Note: Units Inspected % Inspected & Found Defective Units Discarded Due to Defect Units Sold & Returned for Defect Note:
(a) All figures. except per share data, given in millions of dollars Operating Expenses ...... Catalogue Division...... 19.4 29.1 $ $ $ $ 21.5 $ 37.1 $ 6.5 $ 65.1 $ 21.3 $ 36.5 $ 8.6 $ 66.4 $ 19.1 $ 31.1 $ 9.6 $ 59.8 $ 20.5 $ 33.4 $ - $ 53.9 $ Men's Jackets Pants Boots Accessories 11,343 3,403 6,806 1,134 1.0% 0.6% 1.3% 0.4% 1,375 248 1,073 55 688 124 536 2 8 Total 48.5
(b) Figures indicate total income from sales and other sources 101 Net Profit Retail Division. Catalogue Division.. Internet Division. Total $ $ 0.7 $ 7.3 $ 0.9 $ 8.9 $ .. 3.6 $ 12.6 $ (7.1) $ 9.1 $ 4.0 $ 13.7 $ (9.6) $ 8.1 $ (0.9) $ 8.2 $ . $ 7.3 $ (2.9) 9.5 . 6.6 Women's Jackets Pants Boots Accessories
(c) Figures in parentheses indicate a loss 1,856 3090 3,093 928 0.9% .4% 1.1% 0.5% 203 15 413 56 206 28 $ Shares of Stock (million..... Profit Per Share. .. $ Stock Price per Share (average $ 10.1 0.88 $ 14.98 $ 10.3 0.88 $ 15.02 $ 8.7 0.93 13.97 7.1 1.03 $ 12.34 $ $ $ Children's Jackets Boots Accessories 7.1 0.93 9.30 2,475 8,662 1,237 0.8% 2.0% 0.4% 240 2,100 60 120 1,050 30