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: Revenues Cost of sales Selling, General and Administrative (all fixed) Corporate overhead Region I $ 1,217,000 458,500 445,500 Region II $ 1,667,000 818,500 655,500 R&D expenditures Current liabilities Region III $ 2,267,000 1,148,500 875,500 Information on the division assets in the three regions of Lauderdale Corporation follows: Region I $ 184,000 124,000 Total Corporation $ 5,151,000 2,425,500 1,976,500 466,000 Region I $ 717,000 Region II Region III 647,000 1,313,000 Lauderdale Corporation has a cost of capital of 8.6 percent. The individual regions are responsible for research and development (R&D) decisions and for current liabilities. Information on R&D expenditures (which are included in SG&A) for the year and current liabilities for the three regions follows: Region II $ 244,000 174,000 Region III $ 484,000 224,000 R&D expenditures are assumed to be incurred uniformly over the period and are expected to generate benefits for three years. R&D expenditures Current liabilities Region III $ 484,000 224,000 R&D expenditures are assumed to be incurred uniformly over the period and are expected to generate benefits for three years. Region I $184,000 124,000 Required: a. Compute economic value added for the three regions. Ignore taxes. b. How have these regions performed? Required A Required B Region II $ 244,000 174,000 Complete this question by entering your answers in the tabs below. Economic value added Compute economic value added for the three regions. Ignore taxes. Note: Do not round your intermediate calculations, Round your answers to the nearest whole dollar amount. Region I Region II < Required A Region III Required B >