Seaside Enterprises Has the Following Data for Its Three Divisions

question 32

Essay

Seaside Enterprises has the following data for its three divisions for the year:
$\begin{array}{lrrr}&\text { SB }& \text { TH } &\text { GM }\\\text { Revenues } & \$ 1,200,000 & \$ 3,800,000& \$ 2,800,000 \\\text { Cost of sales } & 769,500 & 1,900,000& 1,400,00 \\\text { Allocated corporate overhead } & 72,000 & 228,000 & 210,000 \\\text { Other general \& administration } & 158,500& 1,100,000& 1,100,00\end{array}$

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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