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i need this as soon as possible please Profit Center Responsibility Reporting for a Service Company Thomas Railroad Company organizes its three divisions, the North
i need this as soon as possible please
Profit Center Responsibility Reporting for a Service Company Thomas Railroad 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 income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31 : The company operates three service departments: the Dispatching Department, the Equipment Management Department, and the Treasurer's Department. The Dispatching Department manages the scheduling andreleasing of completed trains. The Equipment Management Departinent 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 company as a whole. The following additional information has been gathered: 1. Prepare quarterly income statements showing income from operations for the three regions. Use three column headings: North, South, and West. Do not round your interim calculations. 2. What is the profit margin of each division? Round to one decimal place. Identify the most successful region according 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 divishons? a. The method used to evaluate the performance of the divisions should be reevaluated. b. A better divisional performance measure would be the rate of return on investment (income from operations divided by divisional assets). c. A better divisional performance measure would be the residual incorne (income from operations less a minimal return on divisional asseta), d. Nane of these choices would be included. e. All of these choices ( a,b8c ) would be included Step by Step Solution
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