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 $ 1,217,000 $ 1,667,000 $ 2,267,000 $ 5,151,000 Cost of sales 458,500 818,500 1,148,500 2,425,500 Selling, General and Administrative (all fixed) 445,500 655,500 875,500 1,976,500 Corporate overhead 466,000