Exercise 14-25 (Algo) Compute Divisional Income (LO 14-1) Owen Audio shows the following information for its two divisions for year 1. Sales revenue Cost of sales Selling, General and Administrative Allocated corporate overhead Consumer Division $ 1,867,200 1,120,320 288,400 130,080 Commercial Division $ 5,912,800 3,792,100 361,840 411,920 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? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 What are the gross margin and operating margin percentages for both divisions? Note: Enter your answers as a percentage rounded to 2 decimal place (i.e., 32.12). Commercial Division Gross margin Operating margin Consumer Division % % % % < Req A Req B2 >
Exercise 14-25 (Algo) Compute Divisional Income (LO 14-1) Owen Audio shows the following information for its two divisions for year 1. Sales revenue Cost of sales Selling, General and Administrative Allocated corporate overhead Consumer Division $ 1,867,200 1,120,320 288,400 130,080 Commercial Division $ 5,912,800 3,792,100 361,840 411,920 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? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 What are the gross margin and operating margin percentages for both divisions? Note: Enter your answers as a percentage rounded to 2 decimal place (i.e., 32.12). Commercial Division Gross margin Operating margin Consumer Division % % % % < Req A Req B2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 14-25 (Algo) Compute Divisional Income (LO 14-1)
Owen Audio shows the following information for its two divisions for year 1.
Sales revenue
Cost of sales
Selling, General and Administrative
Allocated corporate overhead
Consumer
Division
$ 1,867,200
1,120,320
288,400
130,080
Commercial
Division
$ 5,912,800
3,792,100
361,840
411,920
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?
Complete this question by entering your answers in the tabs below.
Req A
Req B1
Req B2
What are the gross margin and operating margin percentages for both divisions?
Note: Enter your answers as a percentage rounded to 2 decimal place (i.e., 32.12).
Commercial
Division
Gross margin
Operating margin
Consumer
Division
%
%
%
%
< Req A
Req B2 >
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