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?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 7E: Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments,...

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