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Thomas Raliroad Company Divisional Income Statements For the Ouarter Ended Daramher 21 2. What is the profit margin of each region? Round to one decimal place. Identify the most successful region according to the profit margin. 3. What would you indude in a recommendation to the CEO for a better method for evalusting the performance of the regions? 3. The method used to evaluate the performance of the regions sheuld be reevaluated. b. A better regionol performance measure would be the return on investment (operating inceme divided by regional assets). c. A better regianal performance measure nosild be the residual income (operating ineome less a minimal return of reglonat osteta). d. None of theie choices would be inclused. All of these cheices (a, b a c) would be included. Prefit center responsibity reporting for a service company Thomas Ralroad Company organizes its three divisions, the North (N), 5outh (S), and West (W) regions, as proft centers. The dhief executive officer (CEO) evaluates dvisional performance, using operating income as a percent of revenues. The following quarterly income and expense accounts were previded from the trial balance as of December 31 : The company operates three suppert deparments: the Dupatchm Departmert, the Coupment Menagemem Department, and the Freasurers Department. TMy Dispatching Department maneges the scheduang and reicesing of completed trains. The Cqulpment Manegement Department manages the ra:poad cars inventories. It. following additional informatson hes been gathered