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  3. arlington clothing, inc., shows the following info

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

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Accounting

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

Lake Region Coastal Region
Sales revenue $ 4,080,000 $ 12,920,000
Cost of sales 2,616,300 6,460,000
Allocated corporate overhead 244,800 775,200
Other general and administration 538,900 3,740,000

The results for year 2 have just been posted:

Lake Region Coastal Region
Sales revenue $ 4,080,000 $ 9,520,000
Cost of sales 2,616,300 4,760,000
Allocated corporate overhead 306,000 714,000
Other general and administration 538,900 3,740,000

a. Compute divisional operating income for the two divisions. (Enter your answers in thousands of dollars rounded to 1 decimal place.)

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

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