Sales revenue Cost of sales Allocated corporate overhead Other general and administration Lake Region $4,200,000 2,711,300 252,000 557,900 Coastal Region $13,110,000 6,555,000 786,600 3,759,000 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. (Enter your answers in thousands of dollars rounded to 1 decimal place.) Lake Region Coastal Region Operating income 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).) Lake Region % Coastal Region % Gross margin percentage Operating margin % % b-2. How well have these divisions performed? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) The gross margin percentage is higher in Lake Region. 2 Divisional income is greater in Coastal Region. ? The gross margin percentage is higher in Coastal Region. 2 Corporate overhead appears to be allocated on the basis of revenues. 2 The operating margin is greater in Lake Region. F Divisional income is greater in Lake Region. The Campus Division of All-States Bank has assets of $2,600 million. During the past year, the division had profits of $265 million. All-States Bank has a cost of capital of 3 percent. Ignore taxes. Required: a. Compute the divisional ROI for the Campus Division. (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).) Divisional ROI % b. Compute the divisional RI for the Campus Division. (Enter your answer in dollars, not in millions.) Divisional RI References eBook & Resources