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1.
East West Central
Revenues
Operating expenses
Operating income before support dept. allocations
Less support department allocations:
Customer support
Legal
Total
Operating income
Supporting schedules:
East West Central Total
Number of customer contacts
Number of hours billed
Service Cost Output = Rate
Customer contact rate per contact
Legal billing rate per hour
2.
Profit margin: Operating Profit
Income Revenues = Margin
East Division
West Division
Central Division
3.
[Key essay answer here]
[Key code here]
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Red Line Railroad Inc.
Divisional Income Statements
For the Quarter Ended December 31
Score:
Key Code:
Instructions
Problem 24(10)-2A
Name:
Section:
0%
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
1.
East West Central
Revenues 1,400,000$ 2,000,000$ 3,200,000$
Supporting schedules:
East West Central Total
Service Cost Output = Rate
2.
Profit margin: Operating Profit
Income
Revenues = Margin
3.
To: CEO
Problem 24(10)-2A
Name:
Solution
Section:
ON
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Score:
Instructions
Answers are entered in the cells with gray backgrounds.
For the Quarter Ended December 31
Red Line Railroad Inc.
Divisional Income Statements