Arlington Clothing, Inc., shows the following information for its two divisions for year 1. Sales revenue Cost of sales Allocated corporate overhead Other general and administration Lake Region $4,080,000 2,616,300 244,800 538,900 Coastal Region $12,920,000 6,460,000 775,200 3,740,000 The results for year 2 have just been posted. Sales revenue Cost of sales Allocated corporate overhead Other general and administration Lake Region $4,080,000 2,616,300 306,000 538,900 Coastal Region $9,520,000 4,760,000 714,000 3,740,000 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? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Compute divisional operating income for the two divisions for year 2. (Enter your answers in thousands of dollars rounded to 1 decimal place.) Lake Region Coastal Region Operating income Req B1 > Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 What are the gross margin and operating margin percentages for year 2 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 % Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 How well have these divisions performed? (Select all that apply.) The reported divisional income for the Lake Region went down because sales fell in Coastal Region. Corporate overhead is allocated on the basis of relative revenues Corporate overhead is allocated on the basis of absolute revenues The performance of the Lake Region is affected by the results in the Coastal Region VA The operating margin is greater in Lake Region The gross margin percentage is higher in Coastal Region