Chege Search The income From Operations + omintakeAssignment/ tessment Maidonvaatteet Sessionnectors inprogresse Paused Update eBook Show Me How Profit Center Responsibility Reporting for a Service Company Thomas Railroad Company organizes its three divisions, the North (1) South (S), and West (W) regions, profitentes, the chief eve officer (CFO) evaluates divisional performance using income from operations percent of revenue the following any income and expects were provided from the trial balance of December 31 Revenues- Region $1,155,700 Revenues- Region 1371,00 Revenue-W Region 2422,200 Operating Expenses - N Region 731,100 Operating Expenses S Region 816,400 Operating Expenses-W Region 1,464,800 Corporate Expenses-Dispatching 601 800 Corporate Expenses-Equipment Management 247.800 Corporate Expenses-Treasurer's 175,500 General Corporate Officers Salaries 337,500 The company operates three service departments the Dispatching Department, the Equipment Management Department, and the Treasurer Department. The Treasurer's Department and general corporate officers salaries are not controllable by division management. The Dispatching Department manages the scheduling and releasing of completed trains. The Equipment Management Department manages the inventories of railroad cars. It makes sure the right freight cars are at the right place at the right time. The Treasurer's Department conducts a variety of services for the company as a whole. The following additional information bat been gathered North South West Number of scheduled trains 4,400 5.300 8,000 Previous Next) Check My Work look Show Me How Treasurer's Department and general corporate omens salaries are not controllable by division management. The patching Department manages the scheduling and releasing of completed train. The qument Management Department manages the inventories of road cars. It makes sure the right freight cars are at the right place at the right time. The Treasurer's Department conducts a variety of services for the company as a whole. The following additional information has been gathered North South West Number of scheduled train 4,400 5.300 3.000 Number of roads in inventory 1,100 1.700 1,400 Required 1. Prepare quarterly income statements showing income from operations for the three regionsUse the coming North, Sout, and West. Do not mund your interim calculations Thomas Railroad Company Divisional Income Statements For the Quarter Ended December 31 North South West Revenue Operating expenses Income from operation before service departent charges Les service department changes Dating Equipment Management Total Vie department charges 982 Chind My Work Previous Ketkessent sessionLocator=inprogress rose eBook Show Me How Less service department charges: Dispatching Equipment Management Total service department charges Income from operations 2. What is the profit margin of each division? Round to one decimal place. Profit Margin Region 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 evaluating the performance of the divisions a. The method used to evaluate the performance of the divisions should be reevaluated. b. A better divisional performance measure would be the rate of return on investment (income from operations divided by divisional assets). C. A better divisional performance measure would be the residual income (income from operations less a minimal return on divisional assets). d. None of these choices would be included. e. All of these choices (a, b & c) would be included