Holit Centar Respensibhity Keporting tor n Service Compony Eahomieht Managemient Department manages the inyentanes of railoud carn. It makos wure the pght freight cars ate at the nght place at the oght tighe Dhe Theasurer Department cooducts a vanety or services for the compony as a whole. The faliowing addibional irfonmation has been dathered canducas a variety of ieniber for the compony as a whale. The following odditional informotion hak been gothered: Thomas Railroad Company Divisional Income statements For the Quarter Ended December 31 Revenues Operating expenses Income from operations before service department charges 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. Tdentify the mont successfuil region occording 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? 0. The method used to evaluate the performance of the divisions ahould be reevaluated. b. A better divisionol performance measure would be the rote 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