$3.$ The following partial financial information $($in thousands of dollars$)$ is available for Thole, Incorporated:

Corporate overhead costs at Thole are allocated to divisions based on relative sales.

Required:

a$.$ Complete the income statements for both divisions and the corporation as a whole.

Note: Enter your answers in thousands. Enter all values as positive value. Round your answers to $1$ decimal place.

$2.$ 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:

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

How have these regions performed?

Required:

a$.$ Compute the division ROI for each of the three regions.

b$.$ How have these regions performed?

Complete this question by entering your answers in the tabs below.

Required A

Compute the division ROI for each of the three regions.

Note: Do not round intermediate calculations. Enter your answers as percentage rounded to $1$ decimal place $($i$.$e$.32\mathrm{.}1).$

$1.$

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?