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 $ $1,215,000$ $ $1,665,000$ $ $2,265,000$ $ $5,145,000$

Cost of sales $457,500817,5001,147,5002,422,500$

Selling, General and Administrative $($all fixed$)442,500652,500872,5001,967,500$

Corporate overhead $462,000$

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

Region I $ $715,000$

Region II $645,000$

Region III $1,310,000$

Required:

Compute the division ROI for each of the three regions.

How have these regions performed?