La Mesa Foods Has the Following Data for Its Two

question 14

Essay

La Mesa Foods has the following data for its two divisions for the year: $$\begin{array} { | l | r | r | } \hline & \text { Uno } & \text { Dos } \\\hline \text { Revenues } & \$ 600,000 & \$ 1,900,000 \\\hline \text { Cost of sales } & 384,750 & 950,000 \\\hline \text { Allocated comorate overhead } & 36,000 & 114,000 \\\hline \text { Other general \& administration } & 79,250 & 550,000 \\\hline\end{array}$$
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.