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:

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.

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.