Trufit center respansibility reporting for a servio company Thimas falroad Compenyy organizes its three ovisions, the North (N), South (S), and West (W) regions, as proft centers. The chief evecutive officer (CEO) evaluates divisionol performanoe, using operating income as a percent of revenues. The following quarterty income and expense acceunts were provided from the trial baiance as of December 31 : 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 teleasing of completed trains. The Fquipment Management Department manages the railfoad cars inventories. It makes surn the right freight cars are at the right place at the right time. The Treasurer's Department conducts a variety of secvices for the company as a whole. The following additional information has been gothered: 1. Prepare quarterly income statements showing operating income for the three regions. Use three column headings: North, 50uth, and West. Do not round your interim calculations. 2. What is the profit margin of each region? Round to one decimal place. Identify the most successiul region accerding to the profit margin. 3. What would you include in a recommendation to the CEO for a better method for evaluating the perfarmance of the reglans? a. The methed uted to evaluate the performance of the regions should be reevaluated. b. A better regional performance measure weuld be the return on investinent (operating income divided by regional assets). c. A better regional performance messure would be the residual income (operating income less a minimal return on regional assets). d. None of these cheices would be included