Seaside Enterprises Has the Following Data for Its Three Divisions

question 24

Essay

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