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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

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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 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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