Requirements is for year 2

Arlington Clothing, Inc., shows the following information for its two divisions for year 1.

sales revenue Lake Reg Coastal Reg

$4,040,000 $13,030,000

Cost of sales 2,650,000 6,485,000

Allocated corporate overhead

242,400 781,800

Other general and administration

556,900 3,730,000

The results for YEAR 2 have just been posted.

sales revenue Lake Reg coastal reg

$4,040, 000 $9,600,000

cost of sales 2,650, 000 4,760,000

Allocated corporate overhead

303,000 720,000

Other general and administration

545,000 3,730,000

Required: a. Compute divisional operating income for the two divisions for YEAR 2.

b-1. What are the gross margin and operating margin percentages for YEAR 2 for both divisions?

b-2. How well have these divisions performed?

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 $4,040,000 2,650,000 242,400 556,900 Coastal Region $13,030,000 6,485,000 781,800 3,730,000 The results for year 2 have just been posted. Sales revenue Cost of sales Allocated corporate overhead Other general and administration Lake Region $4,040,000 2,650,000 303,000 545,000 Coastal Region $9,600,000 4,760,000 720,000 3,730,000 Required: a. Compute divisional operating income for the two divisions for year 2 b-1. What are the gross margin and operating margin percentages for year 2 for both divisions? b-2. How well have these divisions performed