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
a. Compute divisional operating income for the two divisions. (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?