The Monty Transportation Company uses a responsibility reporting system to measure the performance of its...
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Accounting
The Monty 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, with question marks for missing amounts, appeared as follows. Determine the missing pieces of information below.
Planes
Taxis
Limos
Service revenue
$enter a dollar amount
$501,500
$enter a dollar amount
Variable costs
5,493,000
enter a dollar amount
304,800
Contribution margin
enter a dollar amount
252,100
442,552
Controllable fixed costs
1,498,500
enter a dollar amount
enter a dollar amount
Controllable margin
enter a dollar amount
85,000
200,252
Average operating assets
25,032,400
enter a dollar amount
1,540,400
Return on investment
13
%
10
%
enter percentages
%
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