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:

$\backslash$table$[[,,,,$Total$],[$Revenues$,$Region I,Region II$,$Region III,$\backslash$table$[[$Corporation$]]],[$Cost of sales,$1,219,000,$$$1,669,000,$$$2,269,000,$$$5,157,000$