La Mesa Stores Has the Following Data for Its Two

Essay

La Mesa Stores has the following data for its two divisions for the year: $$\begin{array} { | l | r | r | } \hline & \text { Uno } & \text { Dos } \\\hline \text { Revenues } & \$ 6,000,000 & \$ 18,000,000 \\\hline \text { Cost of sales } & 3,769,500 & 9,400,000 \\\hline \text { Allocated comorate overhead } & 400,000 & 1,200,000 \\\hline \text { Other general \& administration } & 772,000 & 5,700,000 \\\hline \text { Return on Investment } & 14 \% & 12 \% \\\hline\end{array}$$
Required:
a.Compute divisional operating income for each of the divisions.Assume taxes are 35%.b.Calculate the profit margin ratio for each division.c.Calculate the asset turnover for each division.