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 division performed? **Arlington Clothing, Inc. Divisional Information for Year 1****Financial Overview:**- **Lake Region:** - Sales Revenue: $4,070,000 - Cost of Sales: $2,646,300 - Allocated Corporate Overhead: $244,200 - Other General and Administration: $544,900- **Coastal Region:** - Sales Revenue: $12,980,000 - Cost of Sales: $6,490,000 - Allocated Corporate Overhead: $778,800 - Other General and Administration: $3,746,000**Requirements:**- **(a)** Compute divisional operating income for the two divisions. Ignore taxes.- **(b-1)** Determine the gross margin and operating margin percentages for both divisions.- **(b-2)** Evaluate the performance of these divisions.**Data Entry Section:**- **Compute divisional operating income:** Enter answers in thousands of dollars, rounded to 1 decimal place.The webpage includes an input table for operating income calculations for both the Lake Region and Coastal Region. There are tabs labeled **Req A, Req B1, Req B2** for different requirements to be completed.

Divisional operating income is the separate operating income calculated in respect of each division…

Answered: divisional operating income

Business

Accounting

divisional operating income

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 5E: Service department charges In divisional income statements prepared for Demopolis Company, the...

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