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?

 

FINANCIAL HIGHLIGHTS for Weatherwear, Inc. (a) Year 5 Year 4 Year 3 Year 2 Year 1 Quality Control Operating Income (b) Summary* Retail Division..... $ 22.2 $ 24.9 $ 23.1 $ 19.6 $ 16.5 Catalogue Division........ $ 44.4 $ 49.1 $ Internet Division................. $ 7.4 $ 1.5 $ 44.8 $ $ 41.6 $ 38.6 Note: $ Note: Total $ 74.0 $ 75.5 $ 67.9 $ 61.2 $ 55.1 (a) All figures, Operating Expenses Retail Division..... $ 21.5 $ 21.3 $ 19.1 $ 20.5 $ 19.4 except per share data, given in millions of dollars Men's Jackets 11,343 1.0% 1,375 Catalogue Division........ $ 37.1 $ 36.5 $ 31.1 $ Internet Division....... $ 6.5 $ 8.6 $ Total $ 65.1 s 66.4 $ 9.6 $ 59.8 $ 33.4 $ $ 29.1 Pants 3,403 0.6% 248 (b) Figures indicate total income from Boots 6,806 Accessories 1,134 1.3% 1,073 Units Inspected % Inspected & Found Defective Units Discarded Due to Defect Units Sold & Returned for Defect 688 124 536 0.4% 55 28 53.9 $ 48.5 sales and other sources Women's Net Profit fo Retail Division.. $ 0.7 $ 3.6 $ 4.0 $ (0.9) $ (2.9) (c) Figures in Jackets 1,856 Pants 0.9% 203 101 309 0.4% 15 8 Catalogue Division... parentheses $ 7.3 $ 12.6 $ 13.7 $ 8.2 $ 9.5 indicate a loss Internet Division....... $ 0.9 $ (7.1) $ (9.6) $ $ Boots 3,093 Accessories 928 1.1% 413 206 0.5% 56 28 Total $ 8.9 $ 9.1 $ 8.1 $ 7.3 $ 6.6 Shares of Stock (million)...... 10.1 10.3 8.7 7.1 7.1 Profit Per Share........ $ 0.88 $ 0.88 $ 0.93 $ 1.03 $ 0.93 Stock Price per Share (average $ 14.98 $ 15.02 $ 13.97 $ 12.34 $ Children's Jackets 2,475 0.8% 240 120 Boots 8,662 Accessories 1,237 0.4% 2.0% 2,100 1,050 60 30 9.30 *All figures based on Year 5 year-end totals