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PLEASE READ: I know the letters on my pictures are small, but the picture is not

ID: 2574775 • Letter: P

Question

PLEASE READ: I know the letters on my pictures are small, but the picture is not blurry. Please zoom in to read the words and numbers, my screen is too wide, so the pictures came out small. I am having troubles with my homework and would like some help. Thank you!!

6.66 polnts Arlington Clothing, Inc., shows the following information for its two divisions for year 1: Lake Region Coastal Region Sales revenue $4,080.000 $12,020,000 Cost of sales 2,616,300 6,400,000 Allocated corporate overhead 244,800 775.200 Other general and administration 538,000 3,740.000 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. (Enter your answers in thousands of dollars rounded to 1 decimal place.) Lake Region Coastal Region Operating income b-1. What are the gross margin and operating margin percentages 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 b-2. How well have these divisions performed? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a cor answer.) a The gross margin percentage is higher in Lake Region. 2 Divisional income is greater in Coastal Region. 2 The gross margin percentage is higher in Coastal Region. a Corporate overhead appears to be allocated on the basis of revenues. a The operating margin is greater in Lake Region. 3 Divisional income is greater in Lake Region.

Explanation / Answer

Part 1:

Part2: is not at all clear. Request you to share the same again so that can see it clearly to answer you.

Indicator Working Particular Lake region Coastal Region Part of Question A Sales Revenue                                40,80,000.00                               1,29,20,000.00 B Cost of Sales                                26,16,300.00                                   64,60,000.00 C Allocated corporated Ovh                                  2,44,800.00                                     7,75,200.00 D Other Gen and Adm                                  5,38,900.00                                   37,40,000.00 E A-B-C-D Operating Income                                     6,80,000.0                                     19,44,800.0 (a) F A-B Gross Income/Profit                                14,63,700.00                                   64,60,000.00 Working G F/A*100 Gross Margin Percentage                                              35.88                                                 50.00 (b-1) H E/A*100 Operating Marging Percentage                                              16.67                                                 15.05 (b-1) FALSE Gross Margin Percentage is higher in Lake region                                              35.88                                                 50.00 (b-2) TRUE Divisional Income is greater in Coatal Region                                     6,80,000.0                                     19,44,800.0 TRUE Gross Margin Percentage is higher in Coastal region                                              35.88                                                 50.00 TRUE Corporates Overheads allocated on basis of Revenuws Working below TRUE Operating Margin Percentage is higher in Lake region                                              16.67                                                 15.05 FALSE Divisional Income is greater in Lake Region                                     6,80,000.0                                     19,44,800.0 Working for Corporate Overheads Base Particular Lake region Coastal Region Total Sales Revenue                                40,80,000.00                               1,29,20,000.00      1,70,00,000.00 Allocated corporated Ovh                                  2,44,800.00                                     7,75,200.00         10,20,000.00 4080000/17000000*1020000 12920000/17000000*1020000                                  2,44,800.00                                     7,75,200.00
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