PLEASE ANSWER QUESTIONS 1-3.

MONTCLAIR AIRLINES, INC. has two divisions organized as profit centers, the Passenger Division and the Cargo Division. The following divisional income statements were prepared: The service department charge rate for the service department costs was based on revenues. Since the revenues of the two divisions were the same, the service department charges to each division were also the same. The following information is available regarding estimated service department usage: During the period, the actual service-department usage equaled the estimated usage. Required: 1. Does the income from operations for the two divisions accurately measure performance? Why or why not? 2. Prepare divisional income statements using the appropriate allocations based on the activity bases provided. 3. Are we going to use the revised "Income from Operations" number for anything else? If so, what