Exercise 14-24 (Algo) Compute Divisional Income (LO 14-1) Lauderdale Corporation is organized in three geographical divisions (regions) with managers responsible for revenues, costs, and assets in their respective regions. The firm is highly decentralized and managers are evaluated solely on divisional performance. 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: Revenues Cost of sales. Selling, General and Administrative (all fixed) Corporate overhead Required: Region I $ 1,219,000 459,500 448,500 Region II $ 1,669,000 819,500 658,500 a. Compute divisional operating income for the three regions. Ignore taxes. b. How have these regions performed? Complete this question by entering your answers in the tabs below. Region III $ 2,269,000 1,149,500 878,500 Total Corporation $ 5,157,000 2,428,500 1,985,500 470,000 Required A Required B Compute divisional operating income for the three regions. Ignore taxes. Note: Do not round the "Overhead rate" value. Round your final answers to the nearest whole dollar amount. Divisional income Region I Region II Region III Required A Required B > Exercise 14-24 (Algo) Compute Divisional Income (LO 14-1) Lauderdale Corporation is organized in three geographical divisions (regions) with managers responsible for revenues, costs, and assets in their respective regions. The firm is highly decentralized and managers are evaluated solely on divisional performance. 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: Revenues Cost of sales Selling, General and Administrative (all fixed) Corporate overhead Required: Region I $ 1,219,000 459,500 Region II $ 1,669,000 819,500 Region III $ 2,269,000 1,149,500 448,500 658,500 a. Compute divisional operating income for the three regions. Ignore taxes. b. How have these regions performed? Complete this question by entering your answers in the tabs below. Required A Required B How have these regions performed? 1a. Based on division income, which region performed the best? 1b. Based on division income, which region performed the worst? 2a. Which region has the highest gross margin percentage? 2b. Which region has the lowest gross margin percentage? 3a. Which region has the highest operating margin percentage? 3b. Which region has the lowest operating margin percentage? < Required A Required S Total Corporation 878,500 $ 5,157,000 2,428,500 1,985,500 470,000