Arlington Clothing, Inc., shows the following information for its two divisions for year 1 gion $12.970 000 n S4.060.000 Sales revenue Cost of sales 2,641,300 6,485,000 Allocated corporate overhead Other general and administration r8,200 37 Required: a. Compute divisional operating income for the two divisions. IIgnore taxes. (Enter your answers in thousands f dollars rounded to 1 decimal place.) Lake Region Coastal Region Operating income b-1. 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).) Lake Region Coastal Region Gross margin percentage Operating margin b-2. How well have these divisions performed? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for wrong answer.) The gross margin percentage is higher in Lake Region. Divisional income is greater in Coastal Region. The gross margin percentage is higher in Coastal Region. Corporate overhead appears be allocated on the basis of revenues. The operating margin is greater in Lake Region. Divisional income is greater in Lake Region