please help me solving 1 2 and 3

9.B2 Divisional Contribution, Performance, and Segment Margins The president of North Shore Railroad wants to ohtain an overview of the company's operations, par- ticularly with respect to comparing freight and passenger husiness. He has heard ahout contribution hes to cost allocations that emphasize cost hehavior patterms and contribution margins, contri butions controllable by segment managers, a you as a consultant to help him. He has given you the following information. nd contributions hy segments. The president has hired al revenue in 20X3 was S80 million, of which $72 million was freight traffic and $8 million was passenger traffic. Fifty percent of the passenger revenue division 2, and 10% by division 3 s generated by division 1, 40% b Total variable costs were $40 million, of which S36 million was caused by freight traffic. Of the S4 million allocable to passenger traffic, $2.1, S1.6, and $.3 million could be allocated to divisions i 2, and 3, respectively Total separable discretionary fixed costs were $8 million, of which $7.6 million applied to freight traffic. For the remaining $400,000 applicable to passenger traffic, $80,000 could not be allocated to specific divisions, while $200,000, s100,000, and $20,000, were allocable to divisions 1, 2, and 3 respectively Total separable committed costs, which were not regarded as being controllable by segment m agers, were S25 million, of which 80% was allocable to freight traffic. Of the 20% traceable to passen ger traffic, divisions 1, 2, and 3 should be allocated $3 million, $700,000, and $300,000, respectively the balance was unallocable to a specific division The common fixed costs not clearly allocable to any part of the company amounted to $800,000. 1. The president asks you to prepare statements, dividing the data for the company as a whole between the freight and passenger traffic and then subdividing the passenger traffic into three divisions 2. Some competing railroads actively promote a series of one-day sightseeing tours on summer weekends. Most often, these tours are timed so that the cars with the tourists are hitched on with regularly scheduled passenger trains. What costs are relevant for making decisions to run such duct such sightseeing tours? Other railroads, facing the same general cost structure, refuse to con tours. Why? 3. Suppose that the railroad has petitioned government authorities for permission to drop division l What would be the effect on overall company net income for 20X4, assuming that the figures are accurate and that 20X4 operations are expected to be in all respects a duplication of 20X3 operation