Proflt Center Responsibility Reporting for a Service Compary Thomas Railroad Company organczes its three divisions, the North ( W ), South (S), and West (W) repions, as profic centers. The chief executive officer (CEO) evaluates aivisional performance using income from operations as a percent of revenues. The following quarterfy income and expense accounts were provided from the trial balance. as of December 31: The company operotes three service departments: the Dispatching Department, the Equipment Management Department, and Bue Treasurers Department. Thel Treasurer's Department and general corporate officers' salaries are not controllable by divicon manegement. The Dispatching Department manages the acheduling and releasing of completed trains. The hauipment. Management Department managos the inventories of ralroad cars. It maies sure the right frelght cars are at the right place at the right time. The Treasurers Department conducts a variety of services for the company as a whole. The following additionel information has been gatheredi 1. Prepare quarterfy income statements showing income from operations foe the three regions, Use three column headings: North, South, and West, Do not round your interim calculations. 1. Prepare quarteriy income statements showing income from operations for the three regions. Use three column headings: North, South, and West. Do not round your interim calculations. 2. What is the profit margin of eoch division? Round to one decimal place. Identy the most successful region according to the profit marpin. 3. What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisians? 2. What is the profit margin of each division? Round to one decimal place. Identify the most successful region according to the profit margin. 3. What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisions? a. The method used to evaluate the performance of the divisions should be reevaluated. b. A better divisional performance measure would be the rate of return on investment (income from operations divided by divisional assets). c. A better divisional performance measure would be the residual income (income from operations less a minimal neturn on divisianal assets) d. None of these choices would be included. e. All of these choices (a,b&c) would be included