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johnson Products Inc. has three regional divisions organized 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 balance as of December 31, 2014:

Revenues-East $ 1,143,900

Revenues-West 1,321,500

Revenues-Central 2,513,000

Operating Expenses-East 724,900

Operating Expenses-West 786,500

Operating Expenses-Central 1,519,700

Corporate Expenses-Shareholder Relations 174,000

Corporate Expenses-Customer Support 696,000

Corporate Expenses-Legal 154,800

General Corporate Officer's Salaries 384,200

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:

	East		West		Central
Number of customer contacts	5,800		7,000		10,400
Number of hours billed	900		1,400		1,300

Prepare quarterly income statements showing income from operations for the three divisions. Use three column headings: East, West, and Central.

Johnson Products Inc.
Divisional Income Statements
For the Quarter Ended December 31, 2014
		East		West		Central
Revenues		$		$		$
Operating expenses
Income from operations before service department charges		$		$		$
Less service department charges:
Customer support		$		$		$
Legal
Subtotal		$		$		$
Income from operations		$		$		$

hat is the profit margin of each division? Round to one decimal place.

Division	Profit Margin
East Division	%
West Division	%
Central Division	%

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