Instructions Red Line Railroad Inc. has three regional divisions organized income and expense accounts were provided from the trial balance as of December 31: as profit centers. The chief executive officer (CEO) oe, using income from operations as a percent of revenues. The following quarterly Revenues-East Revenues-West Revenues- Contra Operating Exponses-East Operating Expenses-West Operating Expenses-Central Corporate Expenses-Shareholder Relations 155.000 Corporate Expenses-Customer Support333.000 Corporate Expenses-Legal General Corporate Officers' Salaries $ 878,000 1,042,000 1,880,000 563,600 619,680 1,172,940 233,100 278,500 The company operates three service departments: Shareholder Relations, Customer Support, and Legal. The Shareholder Relations Department conducts a variety of services for shareholders ot the company. The Customer Support Department is the company's point of contact for new service, complaints, and requests for repair. The department believes that the number of customer contacts is an activity base for this work. The Logal Department provides legal services for division management. The department believes that the number of hours billed is an activity base for this work. The following additional information has been gathered: East West Central Number of customer contacts 4,500 5,500 8,500 1.350 2,100 2,100 Number of hours billed 1. Propare quarterly incomo statoments showing income from oporations for the three divisions 2. identify the most suocessful division according to the proft marpin. Enter percentage rounded 3. What would you include in a recommendation to the CEO for a better method for evaluating Required: Use three column headings: East, West, and Central. two decimal places (eg. 022547 is 22.55%). the performance of the divisions? What is a major weakness of the present method