Profit center responsibility reporting for a service company

Department conducts a variety of services for the company as a whole. The following additional information has been gathered:

Required: $$

Prepare quarterly income statements showing operating income for the three regions. Use three column headings: North, South, and West. Do not round your interim calculations.

What is the profit margin of each region? Round to one decimal place.

What would you include in a recorrmendation to the CEO for a better method for evaluating the performance of the regions?

a$.$ The method used to evaluate the performance of the regions should be reevaluated.

b$.$ A better regional performance measure would be the return on investment $($operating income divided by regional assets$),$

c$.$ A better regional performance measure would be the residual income $($operating income less a minimal return on regional assets$)$

d$.$ None of these choices would be induded.

e$.$ All of these cloices $($a$,$ b&c$)$ would be included.