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:

Thomas Railroad Company

Divisional Income Statements

For the Quarter Ended December $31$

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

Identify the most successful region according to the profit margin.

What would you include in a recommendation 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 included.

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

$1$