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:

Region I Region II Region III Total Corporation

Revenues $ $1,202,000$ $ $1,652,000$ $ $2,252,000$ $ $5,106,000$

Cost of sales $451,000811,0001,141,0002,403,000$

Selling, General and Administrative $($all fixed$)423,000633,000853,0001,909,000$

Corporate overhead $436,000$

Information on the division assets in the three regions of Lauderdale Corporation follows:

Region I $ $702,000$

Region II $632,000$

Region III $1,290,500$

Required:

Compute the division ROI for each of the three regions.

How have these regions performed?