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 $ 1,208,000 $ 1,658,000 $ 2,258,000 $ 5,124,000 Cost of sales 454,000 814,000 1,144,000 2,412,000 Selling, General and Administrative (all fixed) 432,000 642,000 862,000 1,936,000 Corporate overhead 448,000 Information on the division assets in the three regions of Lauderdale Corporation follows: Region I $ 708,000 Region II 638,000 Region III 1,299,500 Lauderdale Corporation has a cost of capital of 8.6 percent. Required: Compute residual income for the three regions. Ignore taxes. How have these regions performed