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Arlington Clothing, Inc., shows the following information for its two divisions for year 1: Lake Region Coastal Region Sales revenue $ 4,190,000 $ 13,100,000 Cost
Arlington Clothing, Inc., shows the following information for its two divisions for year 1:
Lake Region | Coastal Region | |||||
Sales revenue | $ | 4,190,000 | $ | 13,100,000 | ||
Cost of sales | 2,706,300 | 6,550,000 | ||||
Allocated corporate overhead | 251,400 | 786,000 | ||||
Other general and administration | 556,900 | 3,758,000 | ||||
Required:
a. Compute divisional operating income for the two divisions. Ignore taxes. (Enter your answers in thousands of dollars rounded to 1 decimal place.)
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 (i.e., 32.12).)
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