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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 overheadi Other general
Arlington Clothing, Inc., shows the following information for its two divisions for year 1. Sales revenue Cost of sales Allocated corporate overheadi Other general and administration The results for year 2 have just been posted. Sales revenue. Cost of sales Allocated corporate overhead Other general and administration Lake Region Coastal Region $4,020,000 $13,060,000 2,685,000 6,550,000 241,200 783,600 545,900 3,700,000 Lake Region Coastal Region $4,020,000 $9,880,000 2,685,000 4,860,000 301,500 741,000 539,000 3,700,000 Required: a. Compute divisional operating income for the two divisions for year 2. b-1. What are the gross margin and operating margin percentages for year 2 for both divisions? b-2. How well have these divisions performed?
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