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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 11 Region III Region I $ 1,213,000 456,500 439,500 $713,000 643,000 1,307,000 Region III $1,663,000 816,500 649,500 Revenues Cost of sales Selling, General and Administrative (all fixed) Corporate overhead: Information on the division assets in the three regions of Lauderdale Corporation follows: Region III $ 2,263,000 1,146,500 869,500 Required: a. Compute the division ROI for each of the three regions. b. How have these regions performed? Total Corporation $5,139,000 2,419,500 1,958,500 458,000 Complete this question by entering your answers in the tabs below.

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 11 Region III Region I $ 1,213,000 456,500 439,500 $713,000 643,000 1,307,000 Region III $1,663,000 816,500 649,500 Revenues Cost of sales Selling, General and Administrative (all fixed) Corporate overhead: Information on the division assets in the three regions of Lauderdale Corporation follows: Region III $ 2,263,000 1,146,500 869,500 Required: a. Compute the division ROI for each of the three regions. b. How have these regions performed? Total Corporation $5,139,000 2,419,500 1,958,500 458,000 Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 11 Region III Region I $ 1,213,000 456,500 439,500 $713,000 643,000 1,307,000 Region II $1,663,000 816,500 649,500 Revenues Cost of sales Selling, General and Administrative (all fixed) Corporate overhead Information on the division assets in the three regions of Lauderdale Corporation follows: Region III $ 2,263,000 1,146,500 869,500 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. < Previ Total Corporation $5,139,000 2,419,500 1,958,500 458,000 3 of 5 Next
Transcribed Image Text: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 11 Region III Region I $ 1,213,000 456,500 439,500 $713,000 643,000 1,307,000 Region II $1,663,000 816,500 649,500 Revenues Cost of sales Selling, General and Administrative (all fixed) Corporate overhead Information on the division assets in the three regions of Lauderdale Corporation follows: Region III $ 2,263,000 1,146,500 869,500 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. < Previ Total Corporation $5,139,000 2,419,500 1,958,500 458,000 3 of 5 Next
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