Owen Audio shows the following information for its two divisions for year 1. Consumer Division Commercial Division $ 1,879,200 1,127,520 293,400 130,680 Sales revenue Cost of sales Selling, General and Administrative Allocated corporate overhead $ 5,950,800 3,797,100 366,840 413,820 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?
Owen Audio shows the following information for its two divisions for year 1. Consumer Division Commercial Division $ 1,879,200 1,127,520 293,400 130,680 Sales revenue Cost of sales Selling, General and Administrative Allocated corporate overhead $ 5,950,800 3,797,100 366,840 413,820 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?
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter24: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 8E: Rocky Mountain Airlines Inc. has two divisions organized as profit centers, the Passenger Division...
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![Owen Audio shows the following information for its two divisions for year 1.
Commercial
Division.
Consumer
Division
$ 1,879,2001
1,127,520
293,400
$ 5,950,800
3,797,100
366,840
130,680
413,820
Sales revenue
Cost of sales
Selling, General and Administrative
Allocated corporate overhead
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
Compute divisional operating income for the two divisions. Ignore taxes.
Consumer
Division
Commercial
Division
Operating income
<Reg A
Req B1 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F581fc526-c739-4417-8cf4-412a63d26000%2F7d8d781d-88ef-4686-ab68-78721ae8fac5%2Fejeegz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Owen Audio shows the following information for its two divisions for year 1.
Commercial
Division.
Consumer
Division
$ 1,879,2001
1,127,520
293,400
$ 5,950,800
3,797,100
366,840
130,680
413,820
Sales revenue
Cost of sales
Selling, General and Administrative
Allocated corporate overhead
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
Compute divisional operating income for the two divisions. Ignore taxes.
Consumer
Division
Commercial
Division
Operating income
<Reg A
Req B1 >
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