Arlington Clothing, Inc., shows the following information for its two divisions for year 1: Lake Region Coastal Region Sales revenue Cost of sales Allocated corporate overhead Other general and administration $4,150,000 $13,060,000 2,686,300 6,530,000 249,000 783,600 552,900 3,754,000 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 (l.e., 32.12).) Gross margin percentage Operating margin Lake Region % % Coastal Region % % 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.) 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. [2] Corporate overhead appears to be allocated on the basis of revenues. The operating margin is greater in Lake Region. Divisional income is greater in Lake Region.