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 Required: Region I $ 1,203,000 451,500 Region II $ 1,653,000 811,500 Region III Total Corporation 424,500 634,500 $ 2,253,000 1,141,500 854,500 $ 5,109,000 2,404,500 1,913,500 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. 438,000 Required A Required B Compute divisional operating income for the three regions. Ignore taxes. Note: Do not round the "Overhead rate" value. Round your final answers to the nearest whole dollar amount. Divisional income Region I Region II Region III