Rope Corporation has two regional divisions organized as profit centers. The following annual income and expense accounts were provided from the trial balance as of December 31: East Division West Division Corporate $3,500,000 2,000,000 630,000 $2,900,000 800,000 784,000 Revenues Cost of goods sold Operating expenses Shareholder relations Purchasing Payroll accounting Officers' salaries Number of purchase requisitions Number of payroll checks $290,000 400,000 200,000 600,000 3,000 700 2,000 300 The Shareholder Relations Department conducts a variety of services for shareholders of the company and is not controllable by the Division managers; either are the corporate officers' salaries. The activity bases for purchasing and payroll accounting are the number of purchase requisitions and the number of payroll checks, respectively Required: 1. Prepare annual income statements for the two divisions. 2. Calculate the profit margin for each division