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 December 31: Dispatching Department manages the scheduling and releasing of completed trains. The Equipment Manarient in 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 compan a the following additional information has been gathered: calculations. 2. What is the profit margin of each region? Round to one decimal place. Identify the most successful region according to the profit margin. 2 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