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1.
North South West
Revenues
Operating expenses
Operating income before support dept. allocations
Less support department allocations:
Dispatching
Equipment management
Total
Operating income
Supporting schedules:
North South West Total
Number of scheduled trains
Number of railroad cars in inventory
Service Cost Output = Rate
Dispatching rate per scheduled train
Equipment management rate per railroad car
2.
Profit margin: Operating Profit
Income Revenues = Margin
North Region
South Region
West Region
3.
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Thomas Railroad Company
Divisional Income Statements
For the Quarter Ended December 31
Score:
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Instructions
Problem 24(10)-2B
Name:
Section:
0%
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
1.
Supporting schedules:
North South West Total
Service Cost Output = Rate
2.
Profit margin: Operating Profit
3.
To: CEO
The method used to evaluate the performance of the regions should be reevaluated. The present method
Problem 24(10)-2B
Name:
Solution
Section:
ON
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Score:
Instructions
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For the Quarter Ended December 31
Thomas Railroad Company
Divisional Income Statements