Compute divisional operating income for the two divisions

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Reference no: EM133176623

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

 

Lake Region

Coastal Region

Sales revenue

$4,140,000

$13,050,000

Cost of sales

2,681,300

6,525,000

Allocated corporate overhead

248,400

783,000

Other general and administration

551,900

3,753,000

Required -

a. Compute divisional operating income for the two divisions. Ignore taxes.

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

b-2. How well have these divisions performed?

Reference no: EM133176623

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