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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

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