* 0 ebook Show Me How Pri tem Profit Center Responsibility Reporting for a Service Company Conico Railroad Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) es divisional performance, using income from derations as a percent of revenues. The following quarterly Income and expense accounts were provided from the trial balances of December 3!! 51,960,000 2,800,000 4,400,000 1.120,000 Revenues-East Revenues-West Revenues-Central Operating Expenses-East Operating Expenses- West Operating Expenses-Central Corporate Expenses-Shareholder Relations Corporate Expenses-Customer Support Corporate Expenses --Legal General Corporate Officers' Salaries 1,890,000 2,660,000 420,000 560,000 627,200 1,600,000 The company operates three service departments: Shareholder Relations, Customer Support, and Legal. The Shareholder Retation Department conduct any of services for shareholders of the company. The Shareholder Relations Department and general corporate officers' salaries are not controllable by division management. The Customer Support Department is the company's point of contact for new service complaints, and requests for repair The department believes that the number of customer contacts is a costre for this work. The Legal Department provides legal services for division management. The department believes that the number of hours bied is a cost over for this work. The following additional Information has been gathered: East West Central 7.980 2.110 2.100 3.920 2,450 Number of customer contacts Number of hours billed 1,040 Required: 1. Prepare quarterly income statements showing income from operations for the three divisions. Use three column headings: East West, and Centra Conico Railroad Inc. Divisional Income Statements Submit Assignment for Grm SEO Save and Ex 1. Prepare quarterly income statements showing income from operations for the three division. Use De column ingesteld Centre Conice Railroad Inc. Divisional Income Statements For the Quarter Ended December 31 East West Central Revenues Operating expenses Income from operations before service department locations Loss service department allocations Customer Support Legal Total service department locations Income from operations Feed Che Work 1. Determine the customer support rate per train by dividing service cost boy output. For each customer supporto try the customer worthy number of customer contacts. Repeat this process for the other service department location. Subtract the service dartment on the division's income from operations before such allocations 2. Compute the profit margin. Rounded to nearest whole percent. Division Profit Margin East Region West Region Central Region Identify the most successful region according to the profit margin ment la Grading
