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RED LINE RAILROAD, INC. CHAPTER 23 IN CLASS EXERCISE Prepare an income statement showing income from operations for the three divisions. Use headings of East, West and Central. \begin{tabular}{|l|r|} \hline Revenues--East & $1,400,000 \\ \hline Revenues--West & $2,000,000 \\ \hline Revenues--Central & $3,200,000 \\ \hline Operating Expenses--East & $800,000 \\ \hline Operating Expenses--West & $1,350,000 \\ \hline Operating Expenses--Central & $1,900,000 \\ \hline Corporate Expenses--Shareholder Relations & $300,000 \\ \hline Corporate Expenses--Customer Support & $320,000 \\ \hline Corporate Expenses--Legal & $500,000 \\ \hline General Corporate Officers' Salaries & $1,200,000 \\ \hline & \end{tabular} Revenues Operating Expenses \begin{tabular}{|r|r|r|r|} \multicolumn{1}{c|}{ East } & \multicolumn{1}{c|}{ West } & \multicolumn{1}{c|}{ Central } & \multicolumn{1}{c|}{ Total } \\ \hline$1,400,000 & $2,000,000 & $3,200,000 & $6,600,000 \\ \hline$800,000 & $1,350,000 & $1,900,000 & $4,050,000 \\ \hline$600,000 & $650,000 & $1,300,000 & $2,550,000 \\ \hline \end{tabular} Service Department Charges: Customer Support Expenses Legal Expenses Net Income From Operations Sharehold Relations Expense Corporate Officers' Salaries Expense Net Income Number of Customer Contacts Number of legal hours billed