Exercise $14-24($Static$)$ 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:

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.

Required $A$

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