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	$1,157,200
RevenuesS Region	1,350,800
RevenuesW Region	2,500,100
Operating ExpensesN Region	733,300
Operating ExpensesS Region	803,900
Operating ExpensesW Region	1,511,900
Corporate ExpensesDispatching	663,000
Corporate ExpensesEquipment Management	194,400
Corporate ExpensesTreasurers	176,000
General Corporate Officers Salaries	388,600

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	4,900		5,900		8,700
Number of railroad cars in inventory	900		1,400		1,300

Required:

Question Content Area

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.

	North	South	West
Revenues	$fill in the blank a8c14a095f9802f_1	$fill in the blank a8c14a095f9802f_2	$fill in the blank a8c14a095f9802f_3
Operating expenses	fill in the blank a8c14a095f9802f_4	fill in the blank a8c14a095f9802f_5	fill in the blank a8c14a095f9802f_6
Income from operations before service department charges	$fill in the blank a8c14a095f9802f_7	$fill in the blank a8c14a095f9802f_8	$fill in the blank a8c14a095f9802f_9
Less service department charges:
Dispatching	$fill in the blank a8c14a095f9802f_10	$fill in the blank a8c14a095f9802f_11	$fill in the blank a8c14a095f9802f_12
Equipment Management	fill in the blank a8c14a095f9802f_13	fill in the blank a8c14a095f9802f_14	fill in the blank a8c14a095f9802f_15
Total service department charges	$fill in the blank a8c14a095f9802f_16	$fill in the blank a8c14a095f9802f_17	$fill in the blank a8c14a095f9802f_18
Income from operations	$fill in the blank a8c14a095f9802f_19	$fill in the blank a8c14a095f9802f_20	$fill in the blank a8c14a095f9802f_21

Question Content Area

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

Region	Profit Margin
North Region	fill in the blank 38c0acf2307406d_1%
South Region	fill in the blank 38c0acf2307406d_2%
West Region	fill in the blank 38c0acf2307406d_3%