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Chrome File Edit View History Bookmarks People Window Help ? 4)) 16%C%), Sun 1:11 PM ai CengageNOWv2 I Online teaching and learning resource from Cengage Learning ? v2.cengagenow.com/ilrn/takeAssignment takeAssignmentMando?invoker=assignments&takeAssignmentSessionLocator;=assignment take&inprogress-false; Chapter 23 Assignment Show Me How Calculator Profit Center Responsibility Reporting for a Service Company 1. EX.23-01.ALGO 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 bace as of December 31: 2. EX.23-03 3. EX.23-06 ALGO 4. EX.23-07 ALGO 5. EX.23-13.ALGO 6. EX.23-15 ALGO 7. EX.23-18 8. EX.23-20 9. PR.23-01A.BLANKSHEET 10. PR.23-02B.ALGO Revenues-N Region Revenues-S Region Revenues-W Region Operating Expenses-N Region Operating Expenses-S Region Operating Expenses-W Region Corporate Expenses-Dispatching $1,211,000 1,463,200 2,552,000 767,400 870,800 1,543,300 592,000 306,000 184,200 406,700 Corporate Expenses-Equipment Management Corporate Expenses-Treasurer's General Corporate Officers' Salaries The company operates three service 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: 11. PR.23-03B.ALGO 12. PR.23-04B.ALGO North South West Number of scheduled trains 4,600 5,6008,300 lmad Check My Work Previous Next Progress: 10/12 items 64

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1. Divisional Income Statement North South West Revenu 1211000 1463200 2552000 Operating Expense -767400 -870800 -1543300 Income from operations before service department charges 443600 592400 1008700 Service Department charge: Dispatching 592000 in ratio 46:56:83 -147200 -179200 -265600 Equipment Management 306000 in ratio 13:20:18 -78000 -120000 -108000 Total Service Department charge: -225200 -299200 -373600 Income from operations 218400 293200 635100 2. Profit Margin=Income from operations/Revenue North South West Profit Margin 18.03% 20.04% 24.89% Most successful region is West 3. correct answer is e.

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