Corredions to Service Department Charges for a Service Company Wild Sun Airines Inc has two divisions organized as profit centers, the Passenger Division and the Cargo Division. The fallowing divisional income statements were prepared: Wild Sun Airlines Inc. Divisional Income Statements For the Year Ended December 31, 209 Cargo Division Revenues Operating expenses Income from operations before service department charges Less service department charges: $3,025,000 2,450,000 $575,000 $3,025,000 2,735,000 $289,000 Training Flight scheduling Reservations $125,000 $125,000 108,000 108,000 151,200 384200 151,200 384,200 Income from operations The senvice department charge rate for the service department costs was based on revenues. Because the revenues of the two divisions were the same, the service department char The following additional Information is available: $190,800 (95,200) d ges to each division were also the same. Passenger Cargo Total Division Division Number of personnel traired Number of flights Number of reservations requested20,000 350 150 500 800 1,200 2,000 20,00 a. Does the income from operations for the two dvislens acurately measure performance? Explin The reported incone rom operations does not V scuratey measure perfomance because the senice department charges are based on revenues Revenues are x associated with the proft center manager's use df the service department services s Partally corred b, Corredt the drvisiconal income statements, using the activity bases provided in revising the service department charges. If an amount box does not require an entry, leave it blank, or enter 0'. Round your interim calculations to two decimal places, i required. WILD SUN AIRLINES INGC Divisional Income Statements For the Year Ended December 31, 20Ys Passenger Division Cargo Division 025.000 2450,000 3,915.00 2:26,00 Operating expenses 2.736000V Income from opertions before service department charges Less sarvice departnent harges 5750V 239.000 V Traising 175,000 V 6.4001 02400 75,000 V Fght scheduling 13%.0 129,600 302400| X Iincome from aperatiors 11.200 V 168.20 X Check Hy Werk more Check y wark uses nentaning Previous Next All work saved. Save and Exnit Submi t for Grading 217 PM 1/2019 Address