2. Chang and Associates has two divisions-East and West. Using the segmented income statements presented in the following, determine the profit margin ratio for each division: Chang and Associates Segmented Income Statements for the Current Fiscal Year Ended December 31 (dollar amounts are in thousands) East Division West Division Sales $ 1,500,000 $500,000 Cost of goods sold 800,000 215,000 Gross margin $700,000 $285,000 Allocated overhead 150,000 115,000 Selling and administrative expenses 100,000 75,000 Operating income $450,000 $ 95,000 Income tax expense (30% rate) 135,000 28,500 Net income $315,000 $ 66,500