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 $4,140,000 2,685,000 248,400 543,900 Coastal Region $13,040,000 6,540,000 782,400 3,800,000 The results for year 2 have just been posted, Sales revenue Cost of sales Allocated corporate overhead other general and administration Lake Region $4, 140,000 2,685,000 310,500 549,000 Coastal Region 59,680,000 4,760,000 726,000 3,800,000 Required: a. Compute divisional operating income for the two divisions. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed? Answer is complete and correct. Complete this question by entering your answers in the tabs below. Reg A Req B1 Reg B2 What are the cross marain and operating margin percentages for both divisions? (Enter your answers as a percentage rounded to 2 decimal places (ie, 32.12).) Lake Region Coastal Region Gross margin percentage 35.14 % 50.83 % Operating margin 4.07 % 14.38 % 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 $4,140,000 2,685,000 248,400 543,900 Coastal Region $13,040,000 6,540,000 782,400 3,800,000 The results for year 2 have just been posted. Sales revenue Cost of sales Allocated corporate overhead Other general and administration Lake Region $4,140,000 2,685,000 310,500 549,000 Coastal Region $9,680,000 4,760,000 726,000 3,800,000 Required: a. Compute divisional operating income for the two divisions. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed? Answer is complete and correct. Complete this question by entering your answers in the tabs below. Reg A Req B1 Reg B2 Compute divisional operating income for the two divisions. (Enter your answers in thousands of dollars rounded to 1 decim place.) Operating income Lake Coastal Region Region $ 595 5S 3940 > Req B1 > 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 $4,140,000 2,685,000 248,400 543,980 Coastal Region $13,040,000 6,540,000 782,400 3,800,000 The results for year 2 have just been posted Sales revenue Cost of sales Allocated corporate overhead Other general and administration Lake Region $4,140,000 2,685,000 319,500 549,000 Coastal Region $9,680,000 4,768,000 726,000 3,800,000 Required: a. Compute divisional operating income for the two divisions b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed? Answer is complete and correct. Complete this question by entering your answers in the tabs below. Reg A Reg 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 The operating margin is greater in Lake Region The gross margin percentage is higher in Coastal Region
