Profit Center Responsibility Reporting A-One Freight Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance using operating income as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31, 20Y3. Revenues-Air Division Revenues-Rail Division Revenues-Truck Division Operating Expenses-Air Division Operating Expenses-Rail Division $ 902,000 1,059,400 1,911,900 571,600 630,500 Operating Expenses-Truck Division 1,156,200 < Corporate Expenses-Shareholder Relations 137,200 Corporate Expenses-Customer Support 511,200 153,000 302,900 Corporate Expenses-Legal General Corporate Officers' Salaries The company operates three service departments: Shareholder Relations, Customer Support, and Legal. The Shareholder Relations Department conducts a variety of services for shareholders of the company. The Customer Support Department is the company's point of contact for new service, complaints, and requests for repair. The department believes that the number of customer contacts is an activity base for this work. The Legal Department provides legal services for division management. The department believes that the number of hours billed is an activity base for this work. The following additional information has been gathered: 0 DC ndlin ne ion for 3350.pdf < Number of customer contacts Number of hours billed Air Rail Truck 5,300 6,400 9,600 900 1,400 1,100 Division management does not control activities related to the shareholder relations department and general corporate officers' salaries. Required: a. Prepare quarterly income statements showing operating income for the three divisions. Use three column headings: Air, Rail, and Truck. A-One Freight Inc. Divisional Income Statements For the Quarter Ended December 31, 20Y3 Air Rail Truck Revenues Operating expenses Operating income before service department charges Less service department charges: Customer support Legal Total service department charges Operating income Check My Work Previous Next Email Instructor Save and Exit Submit Assignment for Grading