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Compute Divisional Income: Eastern Merchants shows the following information for its two divisions for year 1 Compute Divisional Income: Eastern Merchants shows the ollowing information

Compute Divisional Income: Eastern Merchants shows the following information for its two divisions for year 1

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Compute Divisional Income: Eastern Merchants shows the ollowing information for its two divisions for year 1: Eastern Western Revenue ........................ $1 200.000 $3,800,000 Gael of sales .................... 789,500 1,900,000 Allocated corporate overhead ....... 72.000 228,000 Other general and administration ..... 158.500 1.100.000 Required 1- Compute divisional operating income for the two divisions. Ignore taxes. How well have these divisions performed? 2- Compute gross margin ratio for the two divisions. Ignore taxes. How well have these divisions performed? 3- Compute operating margin ratio for the two divisions. Ignore taxes. How well have these divisions performed? 4- Compute prot margin ratio for the two divisions based on W. How well have these divisions performed? 5- Compute return on investment (ROI) for the two divisions based on a divisional investment of $1,500 for Western Division and $900 for Eastern Division. How well have these divisions performed? 6- Compute residual income (R1) for the two divisions based on a divisional investment of $1.500 for Western Division and $9 00 for Eastern Division and a cost of capital of 20%. How well have these divisions performedd

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