and expense accounts were provided from the trial balance as of December 31 : services for division management. The department believes that the number of hours billed is an activity base for this work. The following additional information has been gathered: Required: 1. Prepare quarterly income statements showing income from operations for the three divisions. Use three column headings: East, West, and 3. What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisions? What is a major weakness of the present method? Quarterly Income Statements Shaded cells have feedback. 1. Prepare quarterly income statements showing income from operations for the three divisions. Use three column headings: East, West, and Central. Question not attempted. Red Line Railroad Inc. Score: 0/84 Divisional Income Statements For the Quarter Ended December 31 \begin{tabular}{|l|l|l|l|} \hline 1 & & East & West \\ \hline 2 & Revenues \\ \hline 3 & Operating expenses \\ \hline 4 & Income from operations before service department charges \\ \hline 5 & Service department charges: & \\ \hline 6 & Customer Support & \\ \hline 7 & Legal \\ \hline 8 & Total service department charges & \\ \hline 9 & Income from operations & \\ \hline \end{tabular} Check My Work Previous Next Feedback Check My Work department charges. Subtract the service department charges for a division from that division's income from operations before such charges. Final Questions Shaded cells have feedback. 2. Compute the profit margin for each division. Enter percentage rounded two decimal places (e.g . 22547 is 22.55% ). \begin{tabular}{lrr} Division & Profit Margin & \\ \hline East Division & & % \\ West Division & & % \\ Central Division & & % \end{tabular} Now identify the most successful division according to the profit margin: Central Feedback Check My Work