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Red Line Rallroad Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance, using income from operations as

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Red Line Rallroad Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance, using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31 $ 862,000 1,036,000 1,890,000 563,600 621,840 1,167,00 150,000 380,000 252,000 274,500 Revenues East Revenues-West Operating Expenses-East Operating Expenses-Central Corporate Expenses Shareholder Relations Corporate Expenses-Customer Support General Corporate Oficers Salaries The company operates three service departments: Sharehoider Relations, Customer Support, and Legal. The Shareholder Relations Department conducts a variety of services tor shareholders of the company. The Customer Support Department is the company's point of contact for new service, complaints, and requests for repair. The department believes that the number of customer contacts is an activity base for this work. The Legal Department provides legal services for division management. The department believes that the number of hours billed is an activity base for this work. The following additional information has been gathered East West Central Number of customer contacts 5,000 6,000 9,000 ,400 2,000 2.200 Number of hours billed

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