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Arlington Clothing, Inc., shows the following information for its two divisions for year 1: Sales revenue Cost of sales Allocated corporate overhead Other general and
Arlington Clothing, Inc., shows the following information for its two divisions for year 1: Sales revenue Cost of sales Allocated corporate overhead Other general and administration Coastal Region $13,090,000 6,545,000 Lake Region $4,180,000 2,701,300 250,800 785,400 555,900 3,757,000 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. (Enter your answers in thousands of 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 a wrong answer.)
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