Profit Center Responsibility Reporting for a Service Company Thomas Railroad 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: Revenues-N Region Revenues-S Region Revenues-W Region Operating Expenses-N Region Operating Expenses-5 Region Operating Expenses-W Region Corporate Expenses-Dispatching $1,283,100 1,524,500 2,739,200 813,100 907,300 1,656,500 Corporate Expenses-Equipment Management Corporate Expenses-Treasurer's General Corporate Officers' Salaries 691,300 260,000 195,100 430,900 The company operates three support departments: the Dispatching Department, the Equipment Management Department, and the Treasurer's Department. The Dispatching Department manages the scheduling 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 following additional information has been gathered: Number of scheduled trains North 5,600 South West 6,700 10,000 Number of railroad cars in inventory Required: 1,000 1,600 1,400 1. 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. Thomas Railroad Company Revenues Operating expenses Divisional Income Statements For the Quarter Ended December 31 Operating income before support department allocations Support department allocations: Dispatching Equipment Management Total support department allocations Operating income North South West 2. What is the profit margin of each region? Round to one decimal place. Region North Region South Region West Region Profit Margin % Accounting numeric field % Check My Work 3 more Check My Work uses remaining. Next