Question
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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Entrepreneurial Financial Management An Applied Approach
Authors: Jeffrey R. Cornwall, David O. Vang, Jean M. Hartman
4th Edition
0765646854, 978-0765646859
