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Profit center responsibilty reporting for a service company Thomas Rallrosd Company organizes its three divisions, the North (N), South (S), and West (W) regions, as profit centers. The chief executive officer (CEO) evaluates divisional performance, using operating income as a percent of revenues, The following quarterly income and expense accounts were provided from the trial balance as of December 317 The company operates three support departmentst the Dispatching Department, the Equipment Management Department, and the Treasurer's Department. The Dispatching Dopartment manages the scheduling and releasing of completed trains. The Equlpment Managernent Degartment manages the railroad cars inventories, 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 compony as a whole. The Poliowing additional information has been gathered: 1. Prepare quarterly income statements showing operating income for the three regions. Use three column headings: North, South, and West. Do not round your interim caiculations. 3more Check My Work uses remaining 2. What is the proht margin of each region? Round to one decimal place. Identify the most successful region sccording to the profit margin. 3. What would you indude in a recommendation to the CEO for a better method for evaluating the performance of the reglons? a. The method used to evaluate the performance of the regions should be reevaluated. b. A better regional performance measure would be the return on investment (operating income divided by regienal assets) c. A better regional performance measure would be the residual income (operating income less a minimal return on regional assets). d. None of these choices would be induded. e. Al of these choices (a,b \& c) would be included