The company operates three service departments: the Dispatching Department, the Equipment Management Department, and the Treasurer's Dispatching Department manages the scheduling and releasing of completed trains. The Equipment Management Department manes the variety of services for the company as a whole. The following additional information has been gathered: 1. Prepare quarterly 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 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 return on divisional assets) d. None of these choices would be included. e. All of these choices (a, b \& c) would be included