The Ferrell Transportation Company uses a responsibility reporting system to measure the performance of its...
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Accounting
The Ferrell Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is measured using a system of responsibility reports and return on investment calculations. The allocation of resources within the company and the segment managers bonuses are based in part on the results shown in these reports. Recently, the company was the victim of a computer virus that deleted portions of the companys accounting records. This was discovered when the current periods responsibility reports were being prepared. The printout of the actual operating results appeared as follows. Determine the missing pieces of information below. (Round intermediate calculations and final answers to 0 decimal places, e.g. 1,255.)
Planes
Taxis
Limos
Service revenue
$
$498,500
$
Variable costs
5,502,400
297,900
Contribution margin
250,900
522,340
Controllable fixed costs
1,499,600
Controllable margin
83,000
277,740
Average operating assets
24,960,500
1,543,000
Return on investment
13
%
7
%
%
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