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 divisional

performance, using operating income as a percent of revenues. The following quarterly

income and expense accounts were provided from the trial balance as of December $31$:

Revenues$-$N Region

$$1,088,500$

$1,268,600$

$2,292,400$

$689,800$

$755,000$

$1,386,300$

$595,000$

$202,400$

$165,600$

$365,600$

Revenues$-$S Region

Revenues$-$W Region

Operating Expenses$-$N Region

Operating Expenses$-$S Region

Operating Expenses$-$W Region

$1,386,300$

Corporate Expenses$-$Dispatching

$595,000$

Corporate Expenses$-$Equipment

Management

$202,400$

Corporate Expenses$-$Treasurer's

$165,600$

General Corporate Officers' Salaries

$365,600$

The company operates three support departments: the Dispatching Department, the

Equipment Management Department, and the Treasurer's Department. The Dispatching

Department manages the scheduling and releasing of completed trains. The Equipment

Management Department manages the railroad cars inventories. It 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 company as a whole. The following additional information has been

gathered:

Required:

Prepare quarterly income statements showing operating income for the three regions. Use

three column headings: North, South, and West. Do not round your interim calculations.

Thomas Railroad Company

Divisional Income Statements

For the Quarter Ended December $31$

What is the profit margin of each region? Round to one decimal place.