Compute divisional operating income for the two divisions

Assignment Help Accounting Basics
Reference no: EM133176623

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

 

Lake Region

Coastal Region

Sales revenue

$4,140,000

$13,050,000

Cost of sales

2,681,300

6,525,000

Allocated corporate overhead

248,400

783,000

Other general and administration

551,900

3,753,000

Required -

a. Compute divisional operating income for the two divisions. Ignore taxes.

b-1. What are the gross margin and operating margin percentages for both divisions?

b-2. How well have these divisions performed?

Reference no: EM133176623

Questions Cloud

How do the problems that you have identified : How do the problems that you have identified vary with those identified by members from other counties
What is the return on investment for division a : Division A of Kern Co. has sales of $350,000, cost of goods sold for $200,000, What is the return on investment for Division A
Compute the true apr for loan : Compute the true APR (annualized IRR) for this loan.
Adoption of the marketing concept benefit a firm : 1) How might the adoption of the marketing concept benefit a firm? How might it benefit the firm's customers?
Compute divisional operating income for the two divisions : Arlington Clothing, Inc., shows the following information for its two divisions for year 1. Compute divisional operating income for the two divisions
Sustaining structural capital in an organization : Discuss the importance of developing and sustaining structural capital in an organization. How can it be used to gain a competitive advantage and add value?
Critical understanding of management issue : Develop independent study and research skills through the detailed study of a current management technique, model or theories
Role of a servant leader in creating an environment : "Scrum is a process framework in which team members can deal with a wide variety of complex and ever-changing problems in a creative fashion while at the same t
Describe the product-service segment of analysis : Pick company of regular product or service that has digital footprint

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd