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PR 24-2A Red Line Railroad I executive officer (CEO) as a percent of revenu provided from the trial balance as of Decem OBJ.3 Profit center
PR 24-2A Red Line Railroad I executive officer (CEO) as a percent of revenu provided from the trial balance as of Decem OBJ.3 Profit center responsibility reporting for a service company nc. has three regional divisions organized as profit centers. The chief evaluates divisional performance, using income from operations es. The following quarterly income and expense accounts were ber 3 Revenues- East Revenues-West Revenues-Centra Operating Expenses-East Operating Expenses-West Operating Expenses-Central Corporate Expenses-Shareholder Relations Corporate Expenses-Customer Support Corporate Expenses-Legal General Corporate Officers'Salaries $1,400,000 2,000,000 3,200,000 800,000 1,350,000 1,900,000 300,000 320,000 1,200,000 (Continued The company operates three service departments: Sharehold Support, and Legal. The Shareholder for shareholders of the company. The shareholder Relations Departme corporate officers' salaries are not controllable by division management support Department is the company's point of contact for new service requests for repair. The department believes that the number of custom activity base for this work. The Legal Department provides legal servicntacts management. The department believes that the number of hours billedd is for this work. The following additional information has been gathered: ctivity Customer and general f customer contacts is an er 24 Decentralized Operations Relations Department conducts a variety of controllable by division management. The neral ice, complaints, and se East West Central 1,500 2,800 5,700 750 1,750 1,500 Number of customer contacts Number of hours billed Instructions 1. Prepare quarterly income statements showing income from operations for th divisions. Use three column headings: East, West, and Central. 2. Identify the most successful division according to the profit margin. for a better method f 3.Provide a recommendation to the CEO or evaluating the performance of of the present method. n your recommendation, identify the marwekess identify the major weakness
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