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Compute divisional operating income for the two divisions

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Reference no: EM132566882

 Arlington Clothing, Inc., shows the following information for its two divisions for year 1:

                                                             Lake Region                     Coastal Region

Sales revenue                                 $4,120,000                   $13,030,000

Cost of sales                                   2,671,300                             6,515,000

Allocated corporate overhead                 247,200                           781,800

Other general and administration              549,900                          3,751,000

Required:

Question a. Compute divisional operating income for the two divisions. Ignore taxes. (Enter your answers in thousands of dollars rounded to 1 decimal place.)

Question b. What are the gross margin and operating margin percentages for both divisions? (Enter your answers as a percentage rounded to 2 decimal places (i.e., 32.12).)

Reference no: EM132566882

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