La Mesa Foods Has the Following Data for Its Two

question 9

Essay

La Mesa Foods has the following data for its two divisions for the year:
$$\begin{array} { l r r } & \text { Uno } &{ \text { Dos } } \\\text { Reverues } & \$ 6 0 0 , 0 0 0 & \$ 1,900,000 \\\text { Cost of sales } & 384,750 & 950,000 \\\text { Allocated copporate overhead } & 36,000 & 114,000 \\\text { Other general \& adrniristration } & 79,250 & 550,000\end{array}$$
Required:
a. Compute divisional operating income for each of the divisions. Assume taxes are 30%.
b. Calculate the gross margin ratio for each division.
c. Calculate the operating margin ratio for each division.
d. Calculate the profit margin ratio for each division.

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Definitions:

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CSA

Canadian Standards Association, an organization that develops standards in various industries, including electrical, mechanical, and energy management.

Canadian Standards Association

A not-for-profit organization that develops standards for a wide range of products and processes in Canada.

Diameter

The length of a straight line passing through the center of a circle to touch both ends of the perimeter.