Exercise $14-24($Algo$)$ Compute Divisional Income $($LO $14-1)$

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:

$$Region IRegion IIRegion IIITotal CorporationRevenues$ $1,211,000$$ $1,661,000$$ $2,261,000$$ $5,133,000$Cost of sales$455,500815,5001,145,5002,416,500$Selling, General and Administrative $($all fixed$)436,500646,500866,5001,949,500$Corporate overhead$454,000$

Required:

Compute divisional operating income for the three regions. Ignore taxes.

How have these regions performed?