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hmas Ralthoad Company organizes its three divisions, the Nany recions as profit centers. The chief executive officer (CEO) using income tom com North (N), South
hmas Ralthoad Company organizes its three divisions, the Nany recions as profit centers. The chief executive officer (CEO) using income tom com North (N), South (s PR 23-2B Profit center responsibility reporting for a service of revenues. The followin expense accounts were provided from the trial balance as 3. Proposal 3 ROI, $3,780,000 5,673,000 5,130,000o 2,678,500 4,494,89o 3,770,050 Region 16,09% ye Revenues-S Region Operating Expenses-N Region Operating Expenses-S Region Operating Expenses-W Region Corporate Expenses-Dispatching 182,000 1,200,000 Corporate Expenses-Equipment Management Corporate Expenses-Treasurer?s General Corporate Officers' Salaries 1380,000 The company operates three service departments: the Dis ment Management Department, and the Treasurer's Dep ment manages the scheduling and releasing of completedt Dispatching Department, the artment trains. The Equipment Ma The Dispatch s sure the right freight car Department manages the railroad cars inventories. It mak the right place at the right time. The Treasurer's Department conducts a the company as a whole. The following additional information has bee ariety of sr, ate North South West Number of scheduled trains Number of railroad cars in inventory 650 1,105 845 6,000 8,400 9,600 1201 Chapter 23 Evaluating Decentralized Operations Instructions 1. Prepare quarterly income income Use three column headings: North, South, and West. atements showing income from operations for the three regions. 2. Identify the most successful region accor ding to the profit margin. performance of thendation to the CEO for a better method for evaluating the present method. gions. In your recommendation, identify the major weakness of the PR 23-3R Diuiat
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