Question: Auto Advance ? Progress 96% Year 2 Year 1 Quality Control Summary FINANCIAL HIGHLIGHTS for Weatherwear, Inc. Year 5 Year 4 Year 3 Operating Income

Auto Advance ? Progress 96% Year 2 Year 1 QualityAuto Advance ? Progress 96% Year 2 Year 1 Quality

Auto Advance ? Progress 96% Year 2 Year 1 Quality Control Summary FINANCIAL HIGHLIGHTS for Weatherwear, Inc. Year 5 Year 4 Year 3 Operating Income Retail Division $ $ 222 $ 24.95 23.15 Catalogue Division........ $ 4445 49.1 $ 44.8 $ Internet Division........... $ 74 $ 1.5$.$ Total $ 74.0 $ 75.5 $ 67.9 $ 19.6 $ 41.6 $ 16.5 38.6 Note: % Inspected & Found Detective 61.2 $ 55.1 Units Inspected Units Discarded Due to Defect Units Sold & Returned for Defect Note: (a) All figures except per share data, given in millions of dollars 19.1 $ 19.4 Operating Expenses Retail Division Catalogue Division....... Internet Division $ $ $ 21.5 $ 37.1 $ 65 $ 65.1 $ 21.3 $ 36.5 $ 8.6 $ 66.4 $ 29.1 Men's Jackets 11,343 Pants 3,403 Boots 6,806 Accessories 1.134 20.5 $ 33.4 $ $ $ 31.15 9.6 $ 59.8 $ 1.0% 0.6% % 1.3% 0.4% 1,375 248 1,073 55 688 124 536 28 Total $ 53.9 $ 48.5 (b) Figures indicate total income from sales and other sources 101 Net Profit Retail Division Catalogue Division..... Internet Division Total $ $ $ (2.9) 9.5 0.7 $ 73 $ 0.9 $ 8.9 $ 3.6 $ 12.65 (7.1) $ 9.15 4.0 $ 13.7 $ 19.6) S 8.1 $ (0.9 $ 8.2 $ $ 7.3 $ (Figures in parentheses indicate a loss Women's Jackets Pants Boots Accessories 1,856 309 3,093 928 0.9% 0.4% 1.1% 0.5% 203 15 413 56 8 206 28 $ 6.6 Shares of Stock (million)..... 10.1 10.3 8.7 7.1 Profit Per Share... $ 0.88 $ 0.88 $ 0.93 $ 1.03 $ Stock Price per Share (average $ 14.98 $ 15.02 $ 13.97 $12.34 $ Children's Jackets 2,475 Boots 8,662 Accessories 1,237 7.1 0.93 9.30 0.8% 2.0% 0.4% 240 2,100 60 120 1,050 30 $ *All figures based on Year 5 year-end totals 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? A $8.3 million B $8.9 million Women's Auto Advance ? Progress 96% $ 0.75 15 3.65 126 S (2.9) 9.5 $ Retail Division... Catalogue Division....... Internet Division. Total 73 $ 0.95 40$ 13.75 (9.6) $ 8.1 $ (0.9) $ 8.2 $ $ 73 $ rigures in parentheses indicate a loss Pants Boots Accessories 309 3,093 928 0.4% 1.1% 0.5% % 413 56 8 206 28 $ $ 8.9 $ 9.1 $ 6.6 10.1 10.3 8.7 7.1 Shares of Stock (million)..... 7.1 Profit Per Share....... 0.88 $ 0.88 $ 0.93 1.03 $ 093 Stock Price per Share (average $ 14.98 $ 15.02 $13.97 $1234 $ 9.30 Children's Jackets 2.475 Boots 8,662 Accessories 1,237 0.8% 2.0% 0.4% 240 2.100 60 120 1,050 30 s *All figures based on Year 5 year-end totals 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? A $8.3 million B $8.9 million $9.5 million D $65.1 million E $65.7 million F Insufficient data

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