Profit center responsibility reporting for a service company Themas fallroad Company organizes its three divisions, the North (N), South (S), and West (W) regions, 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 : The company operates three support departments: the Dispatching Department, the Equigment Management Department, and the Treasurer's Department. The Dispatching Department manages the schedaling and releasing of completed trains. The Equipment Management Department manages the railroad cars inventories. It makes sure the right freight cars are at the right place at the right time. The Treasurer's Department conducts a variety of services for the company as a whole. The foliowing additionsl information has been gathered: 1. Prepare cuarterfy income statements showing operating income for the three regions. Use three column headings: North, South, and Wett, Do not round your interin calculations. 2. What is the profit margin of each region? Round to one decimal place. Identify the most successful region according to the proft margin. 3. 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