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2:15 PM Apple Corporate ExpensesCustomer Support Sat Jul 18 Bing Google Ch. 24: Homework Yahoo e v2.cengagenow.com Favorites The symbol ...f SparkNotes Critical Essa...-Champaign 940/0() Favorites Profit center responsibility reporting for a service company Red Line Railroad Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance, using operating income as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31: RevenuesEast RevenuesWest RevenuesCentral Operating ExpensesEast Operating ExpensesWest Operating ExpensesCentral Corporate ExpensesSharehoIder Relations Corporate ExpensesLegal General Corporate Officers' Salaries $1,400,000 3,200,000 800,000 1,350,000 1,900,000 300,000 320,000 500,000 1,200,000 The company operates three support departments: Shareholder Relations, Customer Support, and Legal. The Shareholder Relations Department conducts a variety of services for shareholders of 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 a cost driver for this work. The Legal Department provides legal services for division management. The department believes that the number of hours billed is a cost driver for this work. The following additional information has been gathered : Number of customer contacts Number of hours billed Required: East 1,500 750 West 2,800 1,750 Central 5,700 1,500 I. Prepare quarterly income statements showing operating income for the three divisions. Use three column headings: East, West, and Central. Red Line Railroad Inc. Divisional Income Statements For the Quarter Ended December 31 East West Revenues Operating expenses Operating income before support department allocations Support department allocations: Check My Work 5 more Check My Work uses remaining. Assignment Score: 20% Central Save and Exit Previous Next Submit Assignment for Grading