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ints 1 eBook Hint Check my work Lauderdale Corporation is organized in three geographical divisions (regions) with managers responsible for revenues, costs, and assets
ints 1 eBook Hint Check my work 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 Print fixed) References Corporate overhead Region I $ 1,200,000 450,000 Region II $ 1,650,000 810,000 Region III $ 2,250,000 1,140,000 420,000 630.000 850,000 Total Corporation $ 5,100,000 2,400,000 1,900,000 432,000 Required: 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 Compute divisional operating income for the three regions. Ignore taxes. Divisional income Mc Region 1 Region I Region III Required: 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 Compute divisional operating income for the three regions. Ignore taxes. Divisional income Region 1 Region II Region III Require A gion $1.661.00 $15.50 5845,50 564650 14130 STAR SG&A Required B > of region Region 736 000 84% 146 590 erices 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?
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