Question
Arlington Clothing, Inc., shows the following information for its two divisions for year 1. Lake Region Coastal Region Sales revenue $ 4,080,000 $ 12,920,000 Cost
Arlington Clothing, Inc., shows the following information for its two divisions for year 1.
Lake Region | Coastal Region | |||||
Sales revenue | $ | 4,080,000 | $ | 12,920,000 | ||
Cost of sales | 2,616,300 | 6,460,000 | ||||
Allocated corporate overhead | 244,800 | 775,200 | ||||
Other general and administration | 538,900 | 3,740,000 | ||||
The results for year 2 have just been posted.
Lake Region | Coastal Region | |||||
Sales revenue | $ | 4,080,000 | $ | 9,520,000 | ||
Cost of sales | 2,616,300 | 4,760,000 | ||||
Allocated corporate overhead | 306,000 | 714,000 | ||||
Other general and administration | 538,900 | 3,740,000 | ||||
b-1. What are the gross margin and operating margin percentages for both divisions?
Compute divisional operating income for the two divisions. (Enter your answers in thousands of dollars rounded to 1 decimal place.)
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b-2. How well have these divisions performed?
What are the gross margin and operating margin percentages for both divisions? (Enter your answers as a percentage rounded to 2 decimal places (i.e., 32.12).)
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How well have these divisions performed? (Select all that apply.)
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