Question: What are the gross margin and operating margin percentages for year 2 for both divisions? (Enter your answers as a percentage rounded to 2 decimal
What are the gross margin and operating margin percentages for year 2 for both divisions? (Enter your answers as a percentage rounded to 2 decimal places (i.e., 32.12).)
Arlington Clothing, Inc., shows the following information for its two divisions for year 1.
| Lake Region | Coastal Region | |||||
| Sales revenue | $ | 4,040,000 | $ | 13,070,000 | ||
| Cost of sales | 2,640,000 | 6,530,000 | ||||
| Allocated corporate overhead | 242,400 | 784,200 | ||||
| Other general and administration | 539,900 | 3,720,000 | ||||
The results for year 2 have just been posted.
| Lake Region | Coastal Region | |||||
| Sales revenue | $ | 4,040,000 | $ | 9,600,000 | ||
| Cost of sales | 2,640,000 | 4,780,000 | ||||
| Allocated corporate overhead | 303,000 | 720,000 | ||||
| Other general and administration | 537,000 | 3,720,000 | ||||
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?
Compute divisional operating income for the two divisions for year 2. (Enter your answers in thousands of dollars rounded to 1 decimal place.)
| Lake Region | Coastal Region | |
| Operating income |
What are the gross margin and operating margin percentages for year 2 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 | % | % | ||
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