auderdale Corporation is organized in three geographical divisions $($regions$)$ with managers responsible for revenues, costs, nd assets in their respective regions. The firm is highly decentralized and managers are evaluated solely on divisional erformance. Corporate overhead $($all fixed$)$ is allocated to the regions based on regional gross margin $($regional revenue minus regional cost of sales$).$

The following information is from Lauderdale's first year of operations:

$\backslash$table$[[,,,,\backslash$table$[[$Total$],[$Corporation$]]],[$Revenues$,$Region I,Region II$,$Region III,Cor$],[$Cost of sales,$$1,213,000,$$$1,663,000,$$$2,263,000,$$$5,139,000$