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QUESTION

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

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

 Lake Region Coastal Region

Sales revenue$4,030,000 $12,940,000

Cost of sales 2,626,300  6,470,000 

Allocated corporate overhead 241,800  776,400 

Other general and administration 540,900  3,742,000 

Required:

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

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