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:

Plasma Membrane

A biological membrane that separates the interior of all cells from the outside environment, controlling the movement of substances in and out of cells.

Permeable

A characteristic of materials that are able to allow liquids or gases to pass through them, especially through pores or interstices.

Gray Matter

The darker-colored area of the central nervous system; abundant in nerve cell bodies, dendrites, and axon terminals, associated with processing and cognition.

Myelination

The process of forming a myelin sheath around nerves, enabling faster electrical impulse transmission.