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Prol Center Responsibility Reporting for a Service Company Thomas Railroad Company organizes its three divisions, the North (N), South(s), and West (W) regions, as protecters. The cha cutive low (CO) wedi using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31: perform Revenues-N Region Revenus Region Revenues-W Region Operating Expenses - Region Operating Expenses-- Region Operating Expenses-w Region Corporate Expenses-Dispatching Corporate Expenses-Equipment Managemen Corporate Expenses - Treasurer's General Corporate Officers' Salaries $3.700.000 5,673,000 5.130,000 2,678,500 4.494.890 3,770,050 162.000 1.200.000 734,000 1.380.000 The company operates three service departments the Dispatching Department, the Equipment Management Department, and the Treasurer's Department. The Dispatching Department manages the scheduling and releasing of completed train. The loviment Management Department manages the road car inventories. It make sure the right cars are the right place at the right time. The Treasurer's Department conducta variety of services for the company whole. The following additional information has been gathered North South West 945 650 Number of scheduled trains 000 1. Prepare quarterly income statements showing income from operations for the three regions. Use three column headings North, South and West Round your interim calculations to three decimal places, if required. Thomas Railroad Company Divisional Income Statements For the Quarter Ended December 31 Revenues Operating expenses Income from operations before service department Service department charges Dispatching Equipment management Total service department charges Income from operations 00) 2. Compute the profit margin Division Profit Margin North Region South Region West Region Identify the most successful region according to the profit margin 3. What would you include in a recommendation to the CEO for a better method for evaluat The method used to evaluate the performance of the division should be evaluated b. A better divisional performance measure would be the rate of return on investment income from operations divided by dilonal assets. A better disional performance measure would be the residual income income from one minimal soal serta None of the choses would be included All of these choices (a, b ) would be included