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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

La Mesa Foods Has the Following Data for Its Two