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

Lake RegionCoastal RegionSales revenue$4,120,000$13,030,000Cost of sales2,671,3006,515,000Allocated corporate overhead247,200781,800Other general and administration549,9003,751,000

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 ??% ?????%