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Exercise 14-36(Algo) Comparing Business Units Using Economic Value Added (EVA)(LO 14-4) Lauderdale Corporation...

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Accounting

Exercise 14-36(Algo) Comparing Business Units Using Economic Value Added (EVA)(LO 14-4)
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:
\table[[,Region I,Region II,Region III,\table[[Total],[Corporation]]],[Revenues,$1,214,000,$1,664,000,$2,264,000,$5,142,000
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