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 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:

RevenuesN Region	$942,100
RevenuesS Region	1,161,600
RevenuesW Region	1,911,400
Operating ExpensesN Region	597,000
Operating ExpensesS Region	691,300
Operating ExpensesW Region	1,155,900
Corporate ExpensesDispatching	401,100
Corporate ExpensesEquipment Management	291,400
Corporate ExpensesTreasurers	143,300
General Corporate Officers Salaries	316,400

The company operates three service departments: the Dispatching Department, the Equipment Management Department, and the Treasurers Department. The Treasurers Department and general corporate officers salaries are not controllable by division management. The Dispatching Department manages the scheduling and releasing of completed trains. The Equipment Management Department manages the inventories of railroad cars. It makes sure the right freight 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 additional information has been gathered:

	North		South		West
Number of scheduled trains	4,800		5,700		8,600
Number of railroad cars in inventory	1,200		1,900		1,600

Required:

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.

Thomas Railroad Company Divisional Income Statements For the Quarter Ended December 31

	North	South	West
Revenues	$fill in the blank a2bd9f0ce00502e_1	$fill in the blank a2bd9f0ce00502e_2	$fill in the blank a2bd9f0ce00502e_3
Operating expenses	fill in the blank a2bd9f0ce00502e_4	fill in the blank a2bd9f0ce00502e_5	fill in the blank a2bd9f0ce00502e_6
Income from operations before service department charges	$fill in the blank a2bd9f0ce00502e_7	$fill in the blank a2bd9f0ce00502e_8	$fill in the blank a2bd9f0ce00502e_9
Less service department charges:
Dispatching	$fill in the blank a2bd9f0ce00502e_10	$fill in the blank a2bd9f0ce00502e_11	$fill in the blank a2bd9f0ce00502e_12
Equipment Management	fill in the blank a2bd9f0ce00502e_13	fill in the blank a2bd9f0ce00502e_14	fill in the blank a2bd9f0ce00502e_15
Total service department charges	$fill in the blank a2bd9f0ce00502e_16	$fill in the blank a2bd9f0ce00502e_17	$fill in the blank a2bd9f0ce00502e_18
Income from operations	$fill in the blank a2bd9f0ce00502e_19	$fill in the blank a2bd9f0ce00502e_20	$fill in the blank a2bd9f0ce00502e_21

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

Region	Profit Margin
North Region	fill in the blank dd6d6908a074fa7_1%
South Region	fill in the blank dd6d6908a074fa7_2%
West Region	fill in the blank dd6d6908a074fa7_3%

Identify the most successful region according to the profit margin.

NorthSouthWest