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Arlington Clothing, Inc., shows the following information for its two divisions for year 1. Lake Region Coastal Region Sales revenue $ 4,060,000 $ 12,970,000 Cost
Arlington Clothing, Inc., shows the following information for its two divisions for year 1. Lake Region Coastal Region Sales revenue $ 4,060,000 $ 12,970,000 Cost of sales 2,641,300 6,485,000 Allocated corporate overhead 243,600 778,200 Other general and administration 543,900 3,745,000 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed?
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