Lauderdale Corporation is organized in three geographical divisions $($reglons$)$ with managers responsible for revenues, costs, and assets In thelr respective regions. The firm is highly decentralized and managers are evaluated solely on divislonal performance. Corporate overhead $($all fixed$)$ is allocated to the regions based on reglonal gross margin $($regional revenue minus regional cost of sales$).$

The following information is from Lauderdale's first year of operations:

$\backslash$table$[[,$Region I,Region II$,$Region III,$\backslash$table$[[$Total$],[$Corporation$]]],[$Revenues$,$$$1,286,000,$$$1,656,000,$$$2,256,000,$$$5,118,000$