Business
Business, 14.06.2021 15:20, CoolDudeTrist

Arlington Clothing, Inc., shows the following information for its two divisions for year 1. Lake Region Coastal Region
Sales revenue $4,160,000 $13,070,000
Cost of sales 2,691,300 6,535,000
Allocated corporate overhead 249,600 784,200
Other general and administration 553,900 3,755,000

Required:
a. Compute divisional operating income for the two divisions. Ignore taxes.
b. What are the gross margin and operating margin percentages for both divisions?
c. How well have these divisions performed?

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Answers: 2

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